What's going on?

Disney announced stronger-than-expected quarterly earnings late last week, with all seemingly well again in the Magic Kingdom.

What does this mean?

There was a lot for investors to like in Disney�s latest report. Streaming service Disney+ now boasts a higher-than-expected 116 million paying customers � closing the gap on arch-enemy Netflix, which has had a tough couple of quarters (tweet this).

But while the loss-making Disney+ is a bet on the company�s future, its theme parks, experiences, and products segment speaks more to Toontown�s present. And this didn�t just roar back to life last quarter: it returned to profitability for the first time since the pandemic began. Granted, the majority of the segment�s profit came from people buying merchandise, but beggars can�t be choosers � and with Disneylands getting busier, it probably won�t be long until the parks become profitable again in their own right.

Why should I care?

For markets: What can I say except you�re welcome?

Disney�s share price rose 3% on Friday as investors booked back into the House of Mouse. While the average Disney+ subscriber may be paying a lower price than predicted, the company is still adding them faster than expected � and that should mean more profit in the long term. Theme parks� reopenings, meanwhile, promise more profit in the short term too. And since they�re largely an outdoor pursuit, those parks should prove relatively pandemic-proof if coronavirus takes a turn for the worse.

The bigger picture: Be our guest.�

Airbnb also notched a better-than-expected second quarter, but it suffered from the flip side of the trends buoying up Disney right now � and its stock initially fell 3% on Friday. With new virus variants still a largely unknown quantity, the online travel platform warned investors that this quarter�s bookings (and cancellations) could lead to disappointing sales.