The Disney + logo is shown on a TV screen in Paris, December 26, 2019.

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Disney Shares fell about 9% Thursday after the company reported a Disney+ placement loss for the most recent quarter.

which company Profits and revenues are recorded During the period, which was in line with Wall Street estimates, it posted a loss of four million Disney+ subscribers. That decline was offset by price increases, which narrowed operating losses in the Stream unit by $400 million for the fiscal second quarter.

Still, Wall Street expected a gain of more than 1 million Disney+ subscribers, according to StreetAccount, and the sudden loss of subscribers spooked the Street.

Shares of the company were trading at about $92 a share on Thursday. The stock was up more than 16% so far this year, as of Wednesday’s close.

The decline was set to erase about $15 billion from the company’s market value.

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Shares of Disney sank Thursday after its fiscal second-quarter earnings report.

Disney will face a headwind from ad budget cuts and stiff competition in streaming Netflix New advertising tier and ongoing economic uncertainty, according to a note from Paul Verna, principal analyst at research firm Insider Intelligence.

“While Disney has managed to limit its streaming revenue losses, it has done so primarily by raising prices, and this strategy is not sustainable in the long term,” Verna wrote. “Disney plans to raise prices again later this year, but will soon run out of room to go up for more hikes.”

Analysts at SVB MoffettNathanson cut their price target for the stock by $3 to $127 after the report, but maintained the company’s outperform rating. The company sees total subscriptions roughly flat in the fiscal third quarter and picking up in the fiscal fourth quarter.

Tim Nolen, Macquarie’s chief media technology analyst, also maintains an outperform rating, stating that Disney “has the fundamental assets to successfully transition into streaming, but it’s a multifaceted effort.”

“Disney is making progress on its cost-saving and operating efficiency efforts amid deteriorating linear television business, both structurally and cyclically,” Nolen wrote in the note.

Disney CEO Bob Iger is overseeing a broad restructuring at the company, including about 7,000 total jobs, that is scheduled to be completed before the summer.

The company also said Wednesday that it will add Hulu content to its Disney+ streaming app, while it expects to raise the price of the ad-free streaming service later this year.

Shares of fellow streaming services Discovery Warner Brothers And Basic It also fell on Thursday, down nearly 4% each. Netflix Stocks have changed little.


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