—— Disney Drops 6% Despite Earnings Beat; Prada Open to More Acquisitions; New York Has Most Millionaire; Apple Reveals New iPad After 6 Years; $1.2B LA Towers to Go On Sale; TikTok Sues US Government; Aramco Increases Quarterly Dividends
1. Disney Drops 6% Despite Earnings Beat
Shares of Walt Disney Co. fell after the company, the largest entertainment provider in the world, disclosed lower-than-expected subscriber numbers for its Disney+ streaming service and a disappointing profit forecast for the year. The shares dropped by 6% in early trading.
Despite raising its full-year earnings growth forecast to 25% from 20%, Disney still fell short of analysts’ expectations of a 25.5% increase. Disney+ had 153.6 million subscribers at the end of the quarter on March 30, which was below the 155.66 million anticipated by Wall Street.
The earnings for the period ending March 30 rose to $1.21 per share, excluding certain items, beating the analysts’ average estimate of $1.12 per share. Revenue for the first quarter grew by 1.2% to $22.08 billion, slightly missing the forecast of $22.1 billion by analysts.
This shortfall overshadowed what was an otherwise strong report for the second quarter.
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2. Prada Open to More Acquisitions
Lorenzo Bertelli, the heir to an Italian billionaire family, stated that Prada is open to exploring acquisition opportunities within the luxury sector as they emerge. Bertelli made this remark to reporters during the inauguration of a new knitwear factory in Torgiano, Italy, on Tuesday. “We have been and will always be open to considering opportunities,” he said.
Bertelli, the son of Prada founders Patrizio and Miuccia Prada and the company’s head of social responsibility, refrained from commenting on specific acquisition targets, including a potential interest in Giorgio Armani SpA. When asked about Armani, Bertelli mentioned that he was not privy to founder Giorgio Armani’s plans for his business.
Last month, Giorgio Armani hinted at potential changes for his Italian fashion empire, indicating that alterations might occur once he is no longer leading the company.
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3. New York Has Most Millionaire
Despite concerns about a high-profile migration of wealth from New York, the city’s residents collectively possess more wealth—over $3 trillion—than any other metropolitan area in the world.
According to Henley & Partners, a consultancy specializing in global migration, New York is home to nearly 350,000 millionaires, the highest number of any city globally, marking a 48% increase from a decade ago. This statistic means that approximately one in every 24 of its 8.26 million residents has a net worth of at least one million dollars, a significant increase from one in 36 in 2013. Additionally, New York continues to host a substantial number of the ultra-wealthy, with the report noting 60 billionaires and 744 individuals possessing investable assets exceeding $100 million.
These findings underscore the extent of wealth in New York during a period where some of its wealthiest residents express concerns about a potential shift in financial power towards Florida, as the finance industry considers establishing a “Wall Street South” in Miami.
Miami itself has seen significant growth, now ranking 33rd among cities with the most millionaires, experiencing a 78% increase over the past decade.
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4. Apple Reveals New iPad After 6 Years
Apple Inc. recently introduced an updated iPad Pro with a focus on artificial intelligence and a larger iPad Air, aiming to boost its tablet lineup which has seen modest updates over the past two years.
During an online event called “Let Loose” on Tuesday, Apple rolled out the first major redesign of the iPad Pro since 2018. The new iPad Pro is slimmer, features a sharper Ultra Retina XDR display using OLED technology, and is equipped with the more powerful M4 chip designed for AI-related tasks. The updated iPad Air retains its previous design but now offers a larger screen option and includes the M2 processor.
The new 13-inch iPad Pro boasts a thickness of only 5.1 millimeters, making it the thinnest product in Apple’s history. Additionally, the larger version of the iPad Pro is now a quarter-pound lighter than its predecessor, while the 11-inch model maintains a weight of just under one pound.
This launch marks the end of the longest period without a new iPad introduction since the device was first unveiled by co-founder Steve Jobs in 2010.
The last significant update to the lineup occurred in October 2022, when Apple enhanced the iPad Pro with a faster processor and introduced a revamped entry-level model.
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5. $1.2B LA Towers to Go On Sale
The steel frames of three unfinished towers in downtown Los Angeles are up for sale. Originally developed by a Chinese firm that invested $1.2 billion before encountering financial difficulties, the site known as Oceanwide Plaza has gained notoriety this year after being covered in graffiti across its 49-story structures.
Brokerage firm Colliers and advisory company Hilco Real Estate have been tasked with marketing and facilitating the sale of the property, pending approval from bankruptcy court. “We are determined to run a disciplined and orderly process to identify the right developer to finish the project in time for the 2028 Summer Olympics,” stated Mark Tarczynski, Executive Vice President at Colliers.
The property is now on the market, with lenders and other creditors aiming to recover approximately $400 million.
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6. TikTok Sues US Government
TikTok has initiated a lawsuit against the U.S. government, challenging a recent law that mandates its Chinese parent company, ByteDance Ltd., to either sell the app or face a nationwide ban.
TikTok contends that the law infringes on free speech rights and negatively impacts creators and small business owners who derive economic benefits from the platform. The company has also highlighted its efforts to secure its U.S. operations, including spending over $1.5 billion and agreeing to oversight from Oracle Corp., an American company.
In a statement included in its Tuesday filing with the U.S. Court of Appeals for the District of Columbia, TikTok argued, “For the first time in history, Congress has enacted a law that subjects a single, named speech platform to a permanent, nationwide ban, and bars every American from participating in a unique online community with more than 1 billion people worldwide.”
This legal action represents TikTok’s first challenge to the legislation since its passage by Congress in April.
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7. Aramco Increases Quarterly Dividends
Saudi Aramco is set to increase its dividend payments this year, even though the company reported a 14% drop in quarterly profits that did not meet analyst expectations. The company announced plans to declare total dividends of $124.3 billion for the year, up nearly 30% from last year’s $97.8 billion, which itself was a 30% increase following the recording of the second-highest annual profits in its history.
These dividends are crucial for Saudi Arabia, as Aramco, the world’s largest oil producer, is predominantly owned by the Saudi state (82%). The dividends are particularly significant as they represent a vital revenue stream for the country, which is currently facing a budget deficit in an environment of relatively low oil prices.
According to the International Monetary Fund (IMF), Saudi Arabia requires an oil price close to $100 a barrel to balance its budget, a figure that has not been achieved this year.
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The content of this article comes from various financial news media such as The Wall Street Journal, Financial Times, and Bloomberg.