Kim Kahn

And in other news of note, Wall Street had mixed reactions to SpaceX acquiring XAI, with some investors immediately looking to what it could mean for Tesla.

Wedbush Securities said the Holy Grail could be some form of combination between SpaceX and Tesla over the next 12 to 18 months, creating tighter connective tissue between two disruptive tech stalwarts.

Seeking alpha analyst The Techie echoed that idea, arguing that Tesla increasingly functions as the industrial's utility of Musk's empire, with energy storage as the missing link needed to power orbital data centers.

They added that Tesla is evolving from an automaker into a physical AI platform, deploying hardware powered by XAI's intelligence across Musk's terrestrial and space-based infrastructure.

Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action, news, and analysis.

Good afternoon.

Today is Monday, February 2nd, and I'm your host, Kim Kahn.

Our top story so far.

Punxsutawney Phil saw his shadow this morning and retreated into his den.

Mickey Mouse released earnings this morning, and the stock retreated too.

So, is it six more weeks of Disney shares treading water?

Disney's among the biggest decliners in the S&P 500 after offering a lackluster outlook and warning that costs are set to rise in its sports and entertainment units, casting a shadow over an otherwise solid quarter.

For fiscal 26, the company reiterated its forecast for double-digit adjusted EPS growth versus 2025 and $19 billion in cash provided by operations.

Disney also says it remains on track to buy max $7 billion in stock this year.

For the current quarter, Disney expects modest growth in experiences, operating income, and

citing international visitation headwinds at domestic parks, pre-launch costs for the Disney Adventure cruise ship, and pre-opening costs for the World of Frozen at Disneyland Paris.

In sports, Q2 operating income is guided to decline about $100 million, due largely to new WWE rights costs, while entertainment operating income is expected to be roughly similar to Q2 2025.

Analysts at J.P.

Morgan noted that Q2 guidance is below their expectations for entertainment and sports while inline for experiences, while Sargo said Q2 guidance came in below its estimates across all three segments.

Meanwhile, Bloomberg reports that Disney's board is set to name theme park's chief Josh DeMauro as the company's next CEO, with a vote expected in the coming week.