Investing.com -Walt Disney Company (NYSE:DIS) is one of the top losers so far during Wednesday’s session with investors continuing to react to the company’s quarterly earnings results, released after the closing bell on Tuesday. The company also dropped a bit of a bombshell, saying that it would end its partnership with Netflix (NASDAQ:NFLX) and develop its own streaming service.
Walt Disney’s quarterly results were mixed, with the company earning $1.58 per share in the third quarter, above the consensus analyst forecast for $1.58. Revenue was $14.24 billion, $180 million short of what analysts forecast.
The company also announced that it will launch an ESPN sports platform in 2018, followed up by another streaming service for television shows and movies in 2019. This will mean that its Netflix partnership will end. Analysts have mixed views on this move, it is seen as risky, but over the long-run could be positive for the company.
"Overall, we think this is the right long-term decision, in light of deteriorating trends in pay TV subscribers and linear viewership," said Goldman Sachs (NYSE:GS) GS analyst Drew Borst.