Disney Shares Slump Despite Earnings Beat, Musk on AI, Markets' Win Streak 05/07/24

Squawk on the Street

CNBC

News, Business, Investing

4.1 • 567 Ratings

🗓️ 7 May 2024

⏱️ 43 minutes

🔗️ Recording | iTunes | RSS

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Summary

Carl Quintanilla, Jim Cramer and David Faber led off the show with shares of Disney sharply lower: A slight Q2 revenue miss overshadowed an earnings beat and a surprise profit for Disney+ and Hulu. Jim explained why he believes the selling of Disney shares was an overreaction. The anchors also reacted to Elon Musk's latest warning on AI in remarks delivered Monday night at the Milken Institute Global Conference in Los Angeles. Also in focus: Major indices aim to extend their daily win streaks, EVs in the spotlight as Tesla China sales fell in April, Apple's virtual iPad event and the road ahead for mega-tech stocks, earnings winners and losers. Squawk on the Street Disclaimer

Transcript

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0:00.0	It's Jim Kramer here. You're listening to the opening bell of CBC Squawk on the Street.
0:04.7	Don't miss a minute of the action.
0:13.6	Good Tuesday morning. Welcome to Squawk in the Street. I'm Carl Kintanio with Jim
0:16.7	Kramer at Post 9 of the New York Stock Exchange. David Faber is at the Milken Institute Global Conference in Los Angeles.
0:22.6	Pretty steady pre-market as the Dow rides this four-day win streak.
0:25.6	Disney earnings are definitely top of mind this morning, along with an Apple iPad event.
0:29.6	In about an hour, Vaughn yields and oil are lower.
0:32.6	Our roadmap's going to begin with Disney.
0:34.6	Better than expected with some streaming numbers nearly break-even, but shares, as you just heard, under pressure.
0:42.3	Plus Elon Musk re-ups his AI warning, saying it will overtake biological intelligence.
0:48.5	And speaking of AI, I'll be joined by the man that Sam Altman calls his secret weapon at OpenAI,
0:56.9	as well as former Treasury Secretary Stephen Mnuchin.
1:03.6	Both, of course, here at the Milken Institute Global Conference. We're in Los Angeles. That'll be over the next couple of hours.
1:11.8	Carl? All right, let's begin with Disney guys, lower in the pre-market, got this slight miss on sales, overshadowing and earnings beat, and some raised guidance.
1:17.6	Narrowly overall streaming losses to about $18 million, Disney Plus and Hulu with a surprise profit.
1:18.8	Traditional TV revenue, box office sales, did see a decline in the period, Jim.
1:22.8	And as Julia just pointed out, although parks and experiences up 10, some moderation they see in post-COVID travel.
1:30.0	Yeah, look, when you go over the actual numbers, the ARPU, the average revenue per user for the streaming, is quite good.
1:36.7	Now, I know there are people who say, well, India is, they lose India, but India was 70, the amount of money they're making an Indian sub versus what they're making domestic so it's quite different.
1:46.8	When I go into this train wreck and buy it here, it's not a train wreck.
1:52.4	Frankly, I didn't expect the parks, any park, to be as strong.
1:56.8	We do have to worry Comcast, apparently this network did have good parks.
	...

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