Shares of Disney (DIS ) went for a wild ride after the close Thursday as the company had a few announcements. First, shares moved lower after the company announced declines in most of it's business compared to the prior year. The stock sold off around 3% after the earnings announcement which included income declines in their media networks, studio division, and consumer & interactive segment. The only segment to add income was in the parks and resorts which came in at $746 million when analysts had expected $735 million.
It wasn't all bad news though. The company announced that it would offer it's streaming service "substantially below" their recent rival Netflix (NFLX ). Just recently Disney announced that it would no longer stream it's movies on Netflix starting in 2019 and instead they would offer their own streaming service. They were clear that the reasoning for charging less than Netflix was simply due to the size of their media library. Being considerably smaller than Netflix they felt they could offer at a lower price point. This service will not include their sports network ESPN however. This is scheduled to be it's own streaming service which should be available in the coming months.
Despite the slight disappointment in the earnings for the quarter, the excitement and possibilities of the streaming service sent shares higher later in the after hours, up about 1%. For the year Disnsey shares have struggled. Since hitting a high back in April the stock has moved lower by around 12%. After briefly turning negative on the year it seems that the bulls are optimistic once again and shares have moved back to positive for the year.