Good Morning!
The financial world is off to an exciting start - here are the stories influencing the market today:
đ Disney beats expectations đž
đ Apple is on the hook again for EU tax bill đ§Ÿ
đ The Hollywood strike finally ends đ
Letâs go!
DISNEY: Magical Earnings đ§
Disney earnings topped expectations thanks partly to profit at ESPN+ and continued growth at theme parks, but a decline in ad revenue weighed on the top line.
Disney's streaming service performance provided a boost as the company gained 7 million new core Disney+ subscribers since the last quarter, increasing the total to 150.2 million, counting Hotstar subscribers. The streaming division also saw a reduction in its year-over-year losses. The report exceeded Wall Street predictions, with the total subscriber count reaching beyond the expected 148.15 million for the quarter.
A substantial decline in advertising revenue was seen at Disneyâs ABC Network and other owned television stations, which experienced decreased political advertising sales for the quarter. Reflecting on this trend, CEO Bob Iger suggested in the summer that the company could explore selling off its television assets.
Source: Fox
In addressing its fiscal approach, Disney reaffirmed its determination to "aggressively manage" its expenses. The company is heightening its cost-saving initiatives, planning to trim an additional $2 billion and aiming for a cumulative savings goal of $7.5 billion.
To follow up on our newsletter yesterday, it is unclear whether Nelson Peltz is satisfied with Disneyâs earnings or not.
EARNINGS
Revenue: $21.24B vs. $21.43B estimate
EPS: $0.82 vs. $0.69 estimate
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APPLE: Major Tax Bill
Apple may be faced with a demand to settle a tax liability of âŹ13 billion ($14 billion) in Ireland following a statement from an advisor to the European Union's highest court proposing the reversal of Apple's prior legal triumph. Advocate General Giovanni Pitruzzella of the EU Court of Justice expressed a non-binding opinion that the previous ruling in Apple's favor by a lower EU court contained significant legal errors and should be re-evaluated. Apple and Ireland overturned the EU's initial ruling in 2020 when judges determined that the European Commission had committed multiple errors in its decision.
Source: Europa.eu
Apple responded sharply on Thursday to Pitruzzellaâs remarks, maintaining its stance with the assertion that the lower court âwas very clear that Apple received no selective advantage and no state aid, and we believe that should be upheld.â The definitive judgment on this significant case of alleged state aid will be made by the EU's top court, which often aligns with the opinions of its Advocate General, in the forthcoming months.
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HOLLYWOOD: Strike Ends
The writerâs strike has officially come to an end after 118 days. The preliminary agreement will be presented to the union's national board for examination and deliberation on Friday. Negotiations resumed in the past few days between the Screen Actors Guild-American Federation of Television and Radio Artists and the Alliance of Motion Picture and Television Producers after a sudden stop last month and have now led to an interim arrangement that is expected to bring an end to the strike by the actors. Actors in the television and film industry aimed to enhance their salaries, job conditions, and health and pension plans and also to set regulations for employing artificial intelligence in upcoming TV and film projects.
Source: Deadline
Furthermore, the union pursued greater openness from streaming platforms regarding their audience numbers to ensure that residual compensations are on par with traditional television.
Headlines You Need To Know: đ
Softbank posts $6.2 billion loss
Shell sues Greenpeace
Virgin Galatic is pausing flights next year
Astra founders offer to take the company private
Ken Griffin says high inflation will last for decades
Chinaâs consumer deflation returns
Polestar cuts guidance for Q4
United Airlines tweak frequent flyer program
From Junk to Fortune
This man became so powerful that Wall Street put him in prison. Michael Milken changed Wall Street forever while he was in his 20s. In the 1980âs, the only used bond investment strategy was to buy bonds from really high-quality companies. Milken discovered that low-quality companies were giving much higher yields, and these investments would make you a lot more money. These bonds became known as junk bonds. He was right and made billions! Milken was pulling in over half a million dollars⊠a day! Yes, you heard that right. At the height of his power, Milken was charged with insider trading, securities fraud, and more. The scandal shook Wall Street to its core. In 1990, Milken pleaded guilty to six counts of securities violations.
Source: Financial News
He was slapped with a ten-year prison sentence, fined $600 million, and banned for life from the securities industry. After prison, Milken became a successful philanthropist and was later pardoned by his old friend, President Donald Trump, in 2020.
Chart of the Day
đ Largest Airlines By Passenger Count
American Airlines leads the way as the largest airline service
Source: Visual Capitalist
GRIT Meme of the Day đ
Tag GRIT Capital on social media for a chance to be featured in our meme or Tweet of the day in our GRIT daily newsletter! đ
Source: @wallstreetbets
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