Disney’s Streaming Division Grows While Overall Profit Drops in Latest Quarter

3.085 - 28.51 Alex Ossola

Here's your midday brief for Monday, February 2nd. I'm Alex Osola for The Wall Street Journal. Disney's profit fell 6% to $2.4 billion, while revenue rose 7% to nearly $26 billion in its latest quarter. Revenue and adjusted profit topped analyst expectations. Streaming profit grew 72% in the last quarter. helping offset a slump in traditional TV and higher costs for sports rights.

28.991 - 39.004 Alex Ossola

But shares fell in midday trading, as executives warned of muted growth in the current quarter. Growth in U.S. theme parks could be modest because fewer international tourists are coming to the country.

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The latest earnings come as the company's board is expected to vote this week on a successor to CEO Bob Iger. Oracle plans to raise between $45 and $50 billion this year to build out its artificial intelligence infrastructure. Oracle wants to build to meet demand from clients such as NVIDIA and Meta. It'll raise the funds for the build-out through both debt and stock sales.

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Oracle emerged as an AI darling last year after securing hundreds of billions of dollars in AI-related business. But some investors are questioning the sustainability of AI spending commitments from tech giants. Oracle's business model concentrates a large chunk of future revenue on a few customers. And Vanguard says it's slashing fees on a quarter of its U.S.

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funds, bringing its average expense ratio down to 0.06 percent, which equates to 60 cents a year on a $1,000 investment. The investment giant says the move affects 53 funds. Today's reductions follow Vanguard's largest ever round of fee cuts last year, and the company says that the two moves together will save clients a combined $600 million.