Why Disney Stock Dropped Sharply Despite Nearing Streaming Profit, Improved Earnings Outlook

Despite Disney's progress toward streaming profitability and an improved full-year earnings forecast, the company's stock dropped about 10% due to mixed fiscal second-quarter earnings and challenges in theme parks. Analysts remain optimistic about Disney's strategic direction under CEO Bob Iger, highlighting a narrowed streaming loss and potential future growth. However, concerns about consistent performance in entertainment and sports units, along with uncertainties in theme park operations, have led to a cautious outlook from some analysts.