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Disney earnings are out, and by the looks of it, the entertainment giant is starting 2026 with some strong points in its first-quarter report, powered in part by two big hits at the box office. However, some disappointing news looking ahead to the second quarter may have spooked investors, causing shares of the stock to slide over 7% to $104.72 in afternoon trading on Monday. Shares of the Walt Disney Company (DIS) were up briefly on Tuesday morning after news that Disney named Josh D’Amaro as its new chief executive officer (starting March 18), but were back down by another half a percent to $103.99 in afternoon trading on Tuesday at the time of this writing. First, the good news: Disney’s first quarter earnings beat estimates with revenue coming in at $25.98 billion, above analyst expectations of $25.74 billion; and higher-than-expected earnings per share (EPS) of $1.63 adjusted, 6 cents above Wall Street estimates of $1.57. That’s due in large part to the entertainment giant’s experiences unit, which operates 12 theme parks across six global resorts, along with cruises and vacation clubs, which reported more than $10 billion in quarterly revenue for the first time. It also got a nice boost from Disney’s studios box office blockbuster releases Zootopia 2 and Avatar: Fire and Ash,” that each surpassed $1 billion at the global box office, according to Disney’s earnings report. The company also highlighted its streaming services, and said sports channel ESPN delivered strong quarterly ratings. (“ESPN capturing more than 30% of all sports viewership across networks, including ESPN on ABC.”) Now the bad news: Disney cautioned that looking ahead to its second quarter, it forecasts that its theme parks will likely see “modest operating income growth” due in part to the decline in visits from international tourists to the U.S., the Associate Press reported. In answer to a question on Monday’s earnings call, Disney CEO Bob Iger said “because international visitors tend to stay in Disney hotels less “the company was “able to read it from other indicators” and as a result “pivoted marketing and sales efforts… to a more domestic audience and we are able to keep attendance rates high.” That overall drop in foreign tourism to the U.S. could likely be the result of a few different factors, including President Donald Trumps crackdown on immigration; his administration’s aggressive stance toward foreign countriesincluding our close European allies and Canadaover the U.S. invasion of Venezuela and push to take over Greenland; and his high tariffs on global nations, often accompanied by anti-foreigner rhetoric.
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E-Commerce
Shares in the sports streaming service FuboTV Inc. (NYSE: FUBO) are currently plunging in Tuesday trading. The stock price drop comes after the streamer reported its Q1 2026 resultsand announced a relatively rare reverse stock split. Heres what you need to know. Whats happened? Today, FuboTV Inc. announced its first-quarter results for fiscal 2026, which ended on December 31. For the quarter, Fubo reported revenue of $1.543 billion, up 40% from the year-earlier quarter. However, despite the companys revenue growth, the streamer reported a net loss of approximately $19.1 million for the quarter. Its earnings per share for the period were negative 2 cents. About a year ago, the company made headlines after entering into an agreement with The Walt Disney Company, which announced it would acquire a 70% stake in the streamer and combine it with the companys existing Hulu + Live TV service. As part of that deal, Fubo would remain a public company. Yet despite this, Fubos stock has struggled, and today, FUBO shares have fallen off a cliff-edge. They are currently trading down 25% to around $1.71 per share as of the time of this writing. Fubo announces reverse stock split Investors clearly werent happy with Fubos quarterly results. No one likes to see a net loss. But Fubos loss wasnt the only thing the company announced. It also revealed that it plans to initiate a reverse stock splita relatively rare event that is the opposite of the more common stock split some companies choose to partake in. In a regular stock split, a company decides to divide its current number of shares by a certain amount. Stock splits can occur in any increment. For example, a 2-for-1 stock split would divide each share into two, meaning there would be twice as many shares after the split as before. These new shares would also be worth half the price of the pre-split shares. This lower per-share price often makes shares appear more accessible for retail investors, which can spur buying. But in a reverse split, a company decides to combine its existing shares. For example, a company may decide to merge two shares into one. The new single share would then be worth the value of two former ones. Why is Fubo reverse-splitting its shares? Fubo didnt get into too many specifics about why it was initiating a reverse stock split. The company said its board approved the reverse split and that it is intended to make the stock more accessible to a broader base of investors while also ensuring that the reduced number of shares is better aligned with the Companys size and scope. The thing is, reverse stock splits arent generally done by companies that are on a firm financial footing. Last year, electric vehicle maker Lucid Group (Nasdaq: LCID) initiated a 1-for-10 reverse stock split in order to boost its share price and keep it from being delisted from the Nasdaq, which will delist companies whose stock price falls below a certain amount$1 in the Nasdaqs casefor a certain period of time. In July, EV charging company ChargePoint Holdings (NYSE: CHPT) issued a 1 for 20 reverse split in an effort to boost its share price and not get booted from the New York Stock Exchange, which also requires that a company cannot have its stock price go below the $1 mark for more than $30 consecutive days. If it does, delisting procedures can begin. Other companies including Nikola (Nasdaq: NKLA) and Virgin Galactic Holdings (NYSE: SPCE) have also reverse-split their shares to avoid delisting. While Fubos stock price hasnt fallen below $1, over the past year it has dropped as low as $1.57. If the stock were to lose about 40% of its current value, it would fall under the $1 mark, which would leave it vulnerable to delisting. Fast Company has reached out to Fubo for comment. How much are Fubo shares reverse-splitting by? Fubo did not announce which ratio its shares would reverse split by, but the company said it would be between 1-for-8 and 1-for-12. The exact reverse split ratio will be determined by its board of directors. At the companys current stock price of around $1.71 per share, a 1-for-8 to 1-for-12 reverse split would give FUBO a share price of between $13.68 and $20.52well above the $1 threshold the stock needs to maintain to continue to be listed on the NYSE. When will Fubos shares begin trading at their reverse split price? Fubo said its shares will begin trading at their new reverse split price later this quarter. Fubos current Q2 ends at the end of March.
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E-Commerce
If you have gifting to loved ones on your mind, here are some considerations related to taxes and logistics. Gifting logistics Unless you’re writing a check from your bank account, the logistics of gifting funds can get a bit complicated.If you want to gift from your IRA, your only option is to sell a chunk of it, then pay any taxes due, then write a check. That’s not terrible, so long as you understand the tax implications. IRA withdrawals are typically subject to ordinary income tax, along with penalties if you’re not yet 59. You could also trigger some knock-on tax effects like the income-related monthly adjustment amount. In other words, gifting from your IRA isn’t as seamless as making a qualified charitable distribution from your IRA or naming someone as a beneficiary of your IRA.Things can also get tricky if you want your financial gift to go toward an investment account for someone else. It’s straightforward if you’re giving a gift to an adult with an eye toward setting them on an investing path: The recipient will have to set up the account, whether an IRA or a taxable brokerage account, and you can then write a check or transfer funds directly to the financial institution.If you’re giving an investment gift to a child, you have options. 529: Best if you know the money will be for college. It will compound tax-free and skirt taxes upon withdrawal for qualified higher-education expenses. Plus you’ll typically get a state tax break on a contribution to your home state’s plan. UGMA/UTMA (Uniform Gifts/Transfers to Minors Act): This is an open-ended way to save for minor children. There are no strictures on how the money is ultimately used, and the assets can be invested in almost anything. Note that UGMA/UTMA assets may reduce a student’s eligibility for financial aid. IRA (if the child has earned income): Funding an IRA can ensure that a young adult fully benefits from compounding for retirement, and the IRA wrapper offers tax benefits. But the young person needs to have earned enough compensation (from work) in a given year to cover the amount of the IRA contribution you’re making on their behalf, though the contribution doesn’t have to come directly from the young adult’s own coffers. Gift tax: a nonissue for most If you give $19,000 or less to any one individual in a single year, there are no reporting or tax requirements. Married couples can give twice that amount with no tax or reporting requirements.Even if you give more than $19,000 to an individual in a single year, it’s not automatically subject to gift tax. Rather, anyone exceeding the gift-tax threshold in a single year must file the gift tax return form, and that excess amount counts against their lifetime exclusion amount. Only when those excess amounts (combined with the value of the individual’s estate) exceed the lifetime exclusion amountcurrently nearly $14 milliondoes anyone actually owe taxes on those gifts. So that’s not a barrier for most people. Tax benefits are limited Because the lifetime gift/estate tax exclusion amount is currently so high, avoiding estate tax shouldn’t be a major motivation for most people to gift assets to individuals during their lifetimesat least for now. The estate tax exclusion has been much lower in the past and could go lower again: It was $2 million as recently as 2008, for example. Moreover, some states levy their own estate taxes, and in most cases, they’re lower than the federal threshold.In contrast with making gifts to qualified charities, you won’t be able to earn a tax deduction on your gift to an individual. The exception is a contribution to a 529 college savings plan; you may be eligible for a state tax deduction or credit.In a similar vein, gifting appreciated assets is unlikely to remove the taxes due on the gains, though it will shift the tax burden to the recipient. This article was provided to The Associated Press by Morningstar. For more personal finance content, go to https://www.morningstar.com/personal-finance.Christine Benz is director of personal finance and retirement planning for Morningstar.
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E-Commerce
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