Disney+, Hulu streaming services reach profitability for first time

Disney (DIS) shares are under pressure following mixed second quarter results. Yahoo Finance's Alexandra Canal joins Morning Brief to break down the entertainment giant's latest earnings report.

The company's direct-to-consumer entertainment segment, including Disney+ and Hulu, reached profitability for the first time, partly attributed to CEO Bob Iger's turnaround efforts. The company also announced it expects its total direct-to-consumer segment to be profitable by the fourth quarter, pointing to an upcoming crackdown on password sharing that may drive subscriptions.

However, the parks and cruise businesses are slowing, and the company softened its third quarter guidance as consumer spending remains relatively low.

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This post was written by Melanie Riehl