May 5, 2020 - Economy & Business

Disney's day of earnings reckoning leaves Wall Street anxious

Mickey Mouse rides in a parade at Disney World's Magic Kingdom in Orlando, Florida. Photo: Joe Raedle/Getty Images

Wall Street is anxiously awaiting Disney earnings at market close today, after several analysts have already begun to downgrade the stock due to its unique exposure to the coronavirus epidemic.

Why it matters: Roughly half of Disney's revenue is directly tied to industries that have been shut down, like parks and resorts, advertising and film.

Expand chart
Data: Yahoo Finance; Chart: Axios Visuals

Disney's damage control so far:

  • Furloughed 100,000 employees
  • Freed up roughly $13 billion in credit
  • Pushed blockbuster movies like Mulan off the release schedule while theaters are mostly closed and delayed production

Yes, but: The one bright spot for Disney throughout the pandemic has been Disney+, which Disney says has surpassed 50 million subscribers.

What to expect: Moody's SVP Neil Begley says that he expects Disney to take a hit in Q1, but that "the dramatic impact that's coming is really in Q2."

  • "We're anticipating that this will be a rough couple of quarters for the company."

Go deeper: Disney parks might not reopen until next year

Go deeper

Updated 45 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 8:30 p.m. ET: 5,919,364— Total deaths: 364,459 — Total recoveries — 2,490,221Map.
  2. U.S.: Total confirmed cases as of 8:30 p.m. ET: 1,745,606 — Total deaths: 102,798 — Total recoveries: 406,446 — Total tested: 16,099,515Map.
  3. Public health: Hydroxychloroquine prescription fills exploded in March —How the U.S. might distribute a vaccine.
  4. 2020: North Carolina asks RNC if convention will honor Trump's wish for no masks or social distancing.
  5. Business: Fed chair Powell says coronavirus is "great increaser" of income inequality.
  6. 1 sports thing: NCAA outlines plan to get athletes back to campus.

Zuckerberg says Trump’s “shooting” tweet didn’t violate Facebook’s rules

Mark Zuckerberg at the 56th Munich Security Conference in Munich, Germany on February 15. Photo: Abdulhamid Hosbas/Anadolu Agency via Getty Images

Facebook did not remove President Trump's threat to send the National Guard to Minneapolis because the company's policy on inciting violence allows discussion on state use of force, CEO Mark Zuckerberg explained in a post on Friday.

The big picture: Zuckerberg's statement comes on the heels of leaked internal criticism from Facebook employees over how the company handled Trump's posts about the Minneapolis protests and his unsubstantiated claims on mail-in ballots — both of which Twitter has now taken action on.

Trump says he spoke with George Floyd's family

President Trump in the Rose Garden on May 29. Photo: Win McNamee/Getty Images

President Trump told reporters on Friday that he had spoken with the family of George Floyd, a black resident of Minneapolis who died after a police officer knelt on his neck on Monday.

Driving the news: Former Vice President Joe Biden said via livestream a few hours earlier that he, too, had spoken with Floyd's family. The presumptive Democratic presidential nominee implored white Americans to consider systemic injustices against African Americans more broadly, Axios' Alexi McCammond reports.