Disney (NYSE:Dis) stock is one of today’s most trending names for mixed reasons. The family entertainment group has been volatile since markets opened as both positive and negative headlines trended.

For one, Disney+, the company’s streaming arm, took off. A profit margin For the first time since its launch in 2019. But so did Disney Reported Weaker-than-expected results for its theme parks, suggesting the industry may be in trouble. That kind of day leaves investors with questions about where DIS stock will go from here. As Place of investment Contributor Yiannis Zourmpanos Reports:

“In Disney’s streaming business, especially entertainment, profitability is critical 6.3 million Disney+ subscribers show strong demand. A $0.44 increase in average revenue per user reflects effective monetization. Strategies such as price increases and premium tiers drive this growth. Additionally, the streaming business is the focus of Disney’s future profitability, with content production at the heart of its growth.

While Disney+ is helping to drive growth, Disney’s recent earnings report raises some red flags regarding the company’s future as DIS stock continues to struggle. Let’s take a closer look at what investors need to know about the firm’s current outlook.

DIS Stock Today: What to Know

It is true that recently Disney Reported third quarter earnings. and beat Wall Street estimates on both revenue and EPS. This is likely part of what has boosted DIS stock to date.

In the three months ended June 30, Disney saw operating income from its streaming services jump 108 percent, to $42 million. On top of that, the company posted a slight year-over-year (YOY) increased paid subscriptions for both Disney+ and Hulu.

However, dwindling revenue from Disney’s parks business suggests dark days may be ahead. As gave The New York Times reports, while “revenues rose 2 percent to $8.4 billion from a year earlier […] Operating Profits fell 3 percent, $2.2 billion.

Disney attributed the problems to “moderation in consumer demand”. This is likely due to the years of inflation many families have faced and are still recovering from.

The positive streaming news also comes just days after Disney reported. Intends to leave. 140 employees from some of its other networks, such as NatGEO and Freeform.

DIS stock is currently down more than 2% for the day after an early morning attempt at a rally. Current momentum suggests that shares will continue to move lower today.

At the date of publication, Samuel O’Briant did not hold any position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, who are subject to them. InvestorPlace.comPublication Guidelines.

At the date of publication, the Editor-in-Chief had no position (direct or indirect) in the securities mentioned in this article.