Also: Measuring performance, Sam Altman's $7T chip project, Google's new AI platform. 
Good morning.
I don’t often listen to earnings calls because they are usually a dull recitation of numbers that can be more easily digested in written form. But this week’s Disney call was an exception. I wish I had been there.
CEO Bob Iger gave an Oscar-worthy performance. In the first two minutes of the call, before citing a single number, he announced:
1. Disney has hired ex-Alabama coach Nick Saban—heart throb of millions of middle-aged Southern men—to be an ESPN commentator. Roll Tide.
2. The company is releasing in November a feature-length animated sequel to Moana—global symbol of the power of diversity.
3. The company is investing in Epic Games, maker of Fortnite—the obsession of post-pubescent male children everywhere.
4. And Disney will be the exclusive streaming home of a new, extended version of the movie Taylor Swift: The Eras Tour, celebrating a star who has proven herself to have unmatched appeal for girls—and a surprising number of guys—of all ages.
Anyone we missed there? Add to that the fact that Disney “leads the industry with 20 nominations headed into the Oscars”—which, by the way, will be broadcast on Disney’s ABC network. And, oh yes, the numbers were pretty good too: Operating income up 27%, adjusted earnings per share up 23%, streaming operating income up 86%, and a healthy $7.5 billion in cost savings for good measure.
The performance pushed Disney’s stock price up more than 10% yesterday. The only person whose heart wasn’t touched was Nelson Peltz, the activist investor who is bidding to join Disney’s board. “It’s déjà vu all over again,” a spokesman for Peltz’s Trian Partners said. “We saw this movie last year and we didn’t like the ending.”
Sorry, Nelson. When it comes to telling stories, you can’t beat Disney—at least as long as Iger is at the helm.
More news below.
Alan Murray
@alansmurray
alan.murray@fortune.com
|
|
|
How do you measure performance?
Almost three-quarters of business leaders feel they need new ways to measure employee performance, according a Deloitte survey published earlier this week. Workers now need skills that are harder to measure, like problem-solving and creativity. According to Deloitte, just 8% of business leaders think they’re doing “great things” in measuring productivity. Fortune
A $7 trillion chip project
OpenAI CEO Sam Altman wants to raise as much as $7 trillion for new semiconductor manufacturing from investors like the government of the United Arab Emirates. Chip sales last year totaled $527 billion. Altman has complained that a shortage of chips is a bottleneck in AI development. The Wall Street Journal
AI battle lines
Google unveiled Gemini, the latest version of its AI platform, on Thursday. Google hopes to put Gemini in the hands of the 3.6 billion people who use Android, its mobile operating service. AI companies like Google and Microsoft are increasingly competing on pricing, distribution and business model—not on who has the most powerful AI model. Fortune
|
|
|
2024 Travel Remains Resilient The travel industry remains resilient even amid economic uncertainty, as Americans continue to prioritize experiences and leverage flexible work arrangements. Deloitte’s 2024 Travel Outlook unpacks what is driving this continued travel intent. Read more.
|
|
|
Prepare for success in 2024 with Fortune Analytics |
Fortune Analytics connects you with the full datasets behind our iconic rankings. Discover new opportunities with the market-sizing and industry-focused analysis you need - including contact information for all decision makers. Download your FREE sample today |
|
|
Thanks for reading. If you liked this email, pay it forward. Share it with someone you know. Did someone share this with you? Sign up here. For previous editions, click here.
To view all of Fortune's newsletters on the latest in business, go here.
|
|
|
|
 |
