Disney stock falls as company attempts to make streaming business profitable

Disney's stock fell by up to 8% in pre-market trading after announcing that while part of its streaming business turned profitable for the first time, it anticipates weaker results in the next quarter. This reflects ongoing challenges in achieving sustained profitability in streaming, despite a recent business turnaround plan by CEO Bob Iger and a victory in a proxy fight with Nelson Peltz.

In Q2, Disney's direct-to-consumer segment, which includes Disney+ and Hulu, reported a small operating income, contrasting sharply with a significant loss in the previous year. However, total streaming losses, including ESPN+, were still present. Disney remains optimistic about reaching full streaming profitability by the fourth quarter of this year. Meanwhile, the company's theme parks continued to perform well, contributing positively to its financial results.