Walt Disney Co. just suffered its worst one-day rout in 21 years. Warner Bros. Discovery Inc., Lions Gate Entertainment Corp. and AMC Entertainment Holdings Inc. are all trading for less than $10. Paramount Global — the home of MTV, CBS and Top Gun: Maverick — has lost half of its value this year.
Losses at Disney’s direct-to-consumer arm, driven by the Disney+ streaming service, more than doubled to $1.47 billion in the company’s fiscal fourth quarter, due to higher programming expenses and the cost of rolling the service in new countries.
Weakness in cable-television advertising revenue also hurt the company’s performance, as it has for other media giants. Disney finished the day down 13%, the biggest one-day loss since Sept. 17, 2001, when trading resumed after the Sept. 11 terrorist attacks.
The losses in media stocks aren’t all Hollywood entertainment companies. The biggest loser in the S&P 500 Media & Entertainment Index this year is Facebook parent Meta Platforms Inc., which gets nearly all of its revenue from advertising. Meta is down 70% this year.
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