A slew of media stocks followed Disney shares lower Tuesday after the Dow component posted its first quarterly earnings miss in five years.
Shares of Twenty-First Century Fox, Time Warner, Liberty Global and Viacom were all in the red, while Disney shed more than 4 percent and accounted for the biggest drag on the Dow Jones industrial average.
Disney reported adjusted earnings of $1.36 per share on $12.97 billion in revenue for its fiscal 2016 second quarter. Analysts expected Disney to report earnings of $1.40 per share on $13.19 billion in revenue, according to a Thomson Reuters consensus estimate.
"If you look at this quarter, the bulls got exactly what they wanted. The studio results beat expectations; the bears didn't actually get what they wanted, which was a miss on the cable side of the business," Jason Bazinet, an analyst at Citigroup, told CNBC's "Squawk on the Street" on Wednesday.
"That's part the reason, I think, Disney's stock was so strong heading into this print. Most people understood those dynamics were probably going to unfold. The real surprise that happened this quarter was a miss in consumer products. That where the Street had been expecting pretty significant growth on the heels of all the intellectual property getting monetized; that was the real surprise," he said.
Shares of Disney are down almost 3 percent for the year, but have surged more than 13 percent over the past three months.
DIS in past 3 months