The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Walt Disney (DIS - Free Report) .
Disney currently has an average brokerage recommendation (ABR) of 1.48, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 32 brokerage firms. An ABR of 1.48 approximates between Strong Buy and Buy.
Of the 32 recommendations that derive the current ABR, 23 are Strong Buy and four are Buy. Strong Buy and Buy respectively account for 71.9% and 12.5% of all recommendations.
Brokerage Recommendation Trends for DIS
Check price target & stock forecast for Disney here>>>
While the ABR calls for buying Disney, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is DIS a Good Investment?In terms of earnings estimate revisions for Disney, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $6.85.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Disney. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Disney.
The past few years have been great for Walt Disney (DIS +2.98%), but not necessarily its shareholders. Despite delivering five consecutive fiscal years of growing revenue -- on widening adjusted net margins in each of the last four -- the stock has lost nearly half of its value in that time.
Even the past year of modestly accelerating revenue growth, box office domination, and skeptics-defying gains at its theme parks hasn't translated to a winning stock chart. Disney shares have fallen 20% over the past 12 months.
The bears may have momentum, but it might not be that way for long. Let's delve into three bearish knocks on Disney, and how the company is better positioned than you might think to bounce back on all fronts. Sit back, pass the popcorn, and let's roll.
Image source: Disney.
1. Hooray for Hollywood Bear thesis: Did you see Moana bomb at the multiplex earlier this month? Disney needs to stop making these sequels and live-action reboots of animated classics and start focusing on original properties.
Bull reality: Moana had a disappointing opening weekend, and it will likely result in a one-time charge down the line. It doesn't mean that the blueprint is toast. Last year's live-action remake was Lilo & Stitch; it was one of just four movies to top $1 billion in worldwide ticket sales.
Disney won't always hit it out of the park. It currently has the country's highest-grossing movie of the year in Toy Story 5, but its next-biggest year-to-date ticket seller is sixth. There are still plenty of major releases in the pipeline at the House of Mouse, including Marvel's Avengers: Doomsday in December, which should be the top draw among 2026 theatrical releases.
There were seven movies in 2024 and 2025 that cleared $1 billion in box office receipts. Disney put out six of them. As an aside, they were all sequels or live-action reboots of existing properties (even the seventh film, China's Ne Zha 2). Disney won't have the same global dominance in 2026, but it's still an indisputable hit factory.
Today's Change
(
2.98
%) $
2.77
Current Price
$
95.60
2. As the turnstiles turn Bear thesis: A theme park vacation isn't for the weak of wallet. Inflationary pressures and factors weighing on international travel can't help in the near term. Didn't you see Comcast warning about softness for its gated attractions in this week's earnings report?
Bull reality: Comcast did warn that it was experiencing softness at its theme parks in June and that weak trend has carried over into the first few weeks of this quarter. Disney and Comcast compete in the same two U.S. markets of Central Florida and Southern California. The situation could pose some near-term challenges, but Disney isn't Comcast.
Comcast may have opened Epic Universe in Orlando last year, but in the process, it has neglected its legacy parks. It's now been a little over five years since it added a major, well-received attraction (Velocicoaster at Islands of Adventure in June 2021) at its three older Universal Orlando destinations.
Disney is marching to a different beat. Its theme parks held up well over the past year, even when many figured the arrival of Epic Universe would crush the industry leader. With Disney and Comcast currently undergoing major additions in their Florida resorts, the long-term prospects remain strong. Expect Disney to make some major theme park announcements at its D23 expo next month, its first fan event since new CEO Josh D'Amaro took over.
3. Historical value Bear thesis: Disney stock's fall in recent years reflects its weakening fundamentals and difficult operating environment for media conglomerates.
Bull reality: The rebuttal here starts with a simple chart, showing how cheap Disney stock has become.
Disney's business has improved dramatically in recent years. It posted a double-digit net margin in fiscal 2025, something that it hadn't done in six years. Between Disney+ turning profitable two years ago and the swift recovery of its consumer experiences business, Disney is faring much better than its meandering stock chart suggests.
The chart above tracks two earnings-based valuation multiples. The orange line is the P/E ratio for the fiscal year 2026, which ends in two months. The purple line looks out to the new fiscal year that starts in October. Did you know Disney was trading for less than 14 times this year's earnings and just 12 times next year's multiple?
It's a story that isn't really being told. Estimates have inched higher since just before it posted its fiscal second-quarter results in May. Before you argue that analysts are being too optimistic, keep in mind that they have underestimated Disney's earnings in each of its last quarterly updates.
Reels, wheels, and deals? Disney is ready to bounce back in the final five months of 2026.
On Dec. 31, arguably the greatest investor of our generation, Warren Buffett, hung up his work coat for the final time as CEO of Berkshire Hathaway (BRKA +0.53%)(BRKB +0.24%). During his more than half-century as CEO, he led Berkshire's Class A shares (BRKA) to a nearly 6,100,000% return, earning him the "Oracle of Omaha" nickname.
But Warren Buffett was fallible. Although he's affably remembered for his first rule of investing, "don't lose money," he had his fair share of investing foul-ups as Berkshire's boss. However, none of his swings and misses have arguably been as sizable as with Apple (AAPL -1.27%) and Walt Disney (DIS -3.00%).
Warren Buffett retired as Berkshire's CEO on Dec. 31. Image source: The Motley Fool.
Warren Buffett was fallible, but being wrong never cost him (or Berkshire) a fortune Occasionally, the Oracle of Omaha's investments didn't go as planned.
For instance, Buffett made a sizable investment in Paramount (now Paramount Skydance) in early 2022. By the midpoint of 2024, the entirety of this stake was disposed of, with Paramount's stock crumbling under the weight of cord-cutting and a reduced dividend.
It was a similar story for Berkshire's boss during the early stages of the COVID-19 pandemic. Roughly six years ago, he sold more than $4 billion in various airline stocks, taking steep losses in the process.
But these aren't Buffett's largest nominal-dollar misses at Berkshire Hathaway. Rather, it was his decision to pare down or sell shares of Apple and Walt Disney (in hindsight) far too early.
Image source: Getty Images.
The Oracle or Omaha's biggest misses came from selling too early In the nine quarters leading up to his retirement (Oct. 1, 2023 – Dec. 31, 2025), Buffett sold 687,642,574 shares of Apple, equating to roughly 75% of his company's stake. On Sept. 29, 2023, Apple's stock closed at $171.21. As of July 22, 2026, Apple's shares had rallied to $325.89. Had Warren Buffett not sold a single share of Apple since the third quarter of 2023, Berkshire's stake in the company would have appreciated by another $106.4 billion!
Berkshire's now-former boss's error with Walt Disney wasn't nearly as steep -- but it's not a drop in the bucket, either. In 1966, he and a consortium of investors took a 5% stake in theme-park operator and burgeoning media company Disney for (drum roll)... $4 million. He flipped this stake one year later (1967) for $6 million. Today, a 5% stake in Disney would be worth around $8.3 billion.
Today's Change
(
-3.00
%) $
-2.88
Current Price
$
92.99
The kicker is that Buffett had a second chance with Walt Disney stock in 1996. Disney acquired Capital Cities/ABC in an all-stock deal, and Berkshire was a shareholder in Capital Cities/ABC. Although Warren Buffett held these shares for a few years, he ultimately kicked Disney to the curb by 2000.
The Oracle of Omaha's most memorable misses weren't stocks that he got wrong -- it was the companies he was spot-on about that he sold too early.
Walt Disney (DIS - Free Report) closed the most recent trading day at $92.83, moving -3.17% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 1.21%. Meanwhile, the Dow experienced a drop of 0.97%, and the technology-dominated Nasdaq saw a decrease of 2.15%.
Shares of the entertainment company have depreciated by 5.19% over the course of the past month, underperforming the Consumer Discretionary sector's loss of 0.92%, and the S&P 500's gain of 0.42%.
The investment community will be paying close attention to the earnings performance of Walt Disney in its upcoming release. The company is slated to reveal its earnings on August 5, 2026. The company is predicted to post an EPS of $1.88, indicating a 16.77% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $25.41 billion, up 7.44% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.85 per share and a revenue of $101.71 billion, signifying shifts of +15.51% and +7.71%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Walt Disney. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Walt Disney is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Walt Disney currently has a Forward P/E ratio of 13.99. Its industry sports an average Forward P/E of 14.14, so one might conclude that Walt Disney is trading at a discount comparatively.
Also, we should mention that DIS has a PEG ratio of 1.21. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Media Conglomerates industry was having an average PEG ratio of 0.58.
The Media Conglomerates industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 95, positioning it in the top 39% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Disney laid off several hundred employees Tuesday morning across multiple divisions, with Pixar absorbing the largest share of the cuts.
At least 116 employees were laid off at Pixar's Emeryville, California, headquarters, according to TheWrap, citing sources. Disney Entertainment Television, Disney Studios and ESPN were also affected by the latest round of workforce reductions.
The layoffs came as Pixar’s newly released "Toy Story 5" dominated the global box office, grossing about $962 million worldwide and putting the film on track to surpass the $1 billion mark.
The cuts also mark Pixar's largest round of layoffs in the last two years, despite "Inside Out 2" becoming the highest-grossing animated film of all time with $1.69 billion worldwide in 2024.
DISNEY LAYS OFF 1,000 EMPLOYEES ACROSS TV AND FILM UNDER NEW CEO
Toy Story characters Jessie, Woody and Buzz Lightyear pose at a red carpet launch event for 'Toy Story 5' in London on May 28, 2026. (Henry Nicholls / AFP / Getty Images)
Within Disney Entertainment, National Geographic is expected to be among the hardest-hit brands, according to the report.
ESPN also cut several high-profile on-air personalities, including Karl Ravech, a longtime SportsCenter anchor and Baseball Tonight host who has been with the network since 1993, The Hollywood Reporter reported.
Ryan Clark, a former NFL player who has served as an ESPN football analyst for more than a decade, was also named.
DISNEY CEO DEFENDS MASSIVE AI DEAL, SAYS CREATORS WON'T BE THREATENED
Characters from Disney and Pixar's "Inside Out 2" are displayed during the film's world premiere at the El Capitan Theatre in Hollywood on June 10, 2024. (Photo by Alberto E. Rodriguez/Getty Images for Disney/Pixar / Getty Images)
ESPN Chairman Jimmy Pitaro told staff in a memo Tuesday morning that the company made the decision after an extensive evaluation of its teams and organizational structure.
"Over the past several months, we’ve made significant progress integrating the NFL assets that we acquired into ESPN. Throughout this process, we have taken the time to carefully evaluate our collective teams, resources and organizational structure to best position us for the future. As a result, we had to make some difficult decisions about job impacts that we will be communicating today," Pitaro said, according to The Hollywood Reporter.
The cuts may have been triggered in part by the underperformance of "Hopper," Pixar's original film that launched earlier this year, sources told TheWrap.
The movie reportedly finished slightly below breaking even under Hollywood accounting standards.
Josh D'Amaro, as then-chairman of Disney Experiences for Walt Disney Co., during the Allen & Co. Media and Technology Conference in Sun Valley, Idaho, US, on Thursday, July 10, 2025. (David Paul Morris/Bloomberg via Getty Images / Getty Images)
CLICK HERE TO GET FOX BUSINESS ON THE GO
Pixar’s "Elio" also struggled at the box office, earning about $154 million worldwide in 2025 against a reported production budget of $200 million. It marked the studio’s lowest-grossing film since the COVID-impacted "Onward."
The latest round of layoffs marks the third wave of job cuts to hit the media giant this year.
Ticker Security Last Change Change % DIS THE WALT DISNEY CO. 95.87 -0.27 -0.28% In April, Disney laid off roughly 1,000 employees across its television and film divisions under newly appointed CEO Josh D’Amaro.
The executive cited the need to "streamline" operations amid the "fast-moving pace" of change across the entertainment industry.
In January, Disney reportedly consolidated its marketing departments under Chief Brand Officer Asad Ayaz, leading to additional cuts in those areas, according to The Hollywood Reporter.
The Walt Disney Company has unleashed a fresh bloodbath across its entertainment empire, with Pixar taking a major hit despite the blockbuster success of “Toy Story 5.”
The “Mouse House” announced several hundred layoffs Tuesday in its third round of cuts this year, affecting Disney Entertainment Television, ESPN, corporate divisions and Disney Studios, according to SFist.
Pixar’s Emeryville animation studio was hit hardest within the film division. Disney has not confirmed how many Pixar workers lost their jobs, but a source told TheWrap that roughly 116 employees were laid off.
Disney has unleashed a fresh bloodbath across its entertainment empire, with Pixar taking a major hit. GC Images
Disney has not confirmed how many Pixar workers lost their jobs, but a source said around 116 employees were laid off. AFP via Getty Images Many of the Pixar cuts were concentrated in production and operations and reflected the studio’s current slate of projects rather than any single movie’s performance.
“These changes are part of our continual evaluation of how we manage resources and reinvest across the company as our industry continues to evolve,” a Disney spokesperson told the outlet.
The latest cuts come despite “Toy Story 5” delivering a massive box office debut after hitting theaters June 19.
The recent installment in the animated franchise raked in an estimated $312 million worldwide during its opening weekend, including a franchise-record $160 million domestically.
“We’re building a company that’s more agile,” Disney CEO Josh D’Amaro told employees in April. Getty Images for SXSW Pixar’s recent original movies, however, have produced more mixed results at the box office.
“Elio” posted the weakest opening weekend in the studio’s history, while “Hoppers” earned stronger reviews and better ticket sales but still fell short of Pixar’s established franchises’ commercial success.
The Emeryville studio has already endured repeated rounds of job cuts.
Disney then eliminated roughly 1,000 more positions in April across marketing, television, ESPN, technology, studio operations and corporate teams as it continued reshaping its workforce.
“We’re building a company that’s more agile and better equipped for how the entertainment business is changing,” Disney CEO Josh D’Amaro told employees in April.
Many of the eliminated ESPN positions were behind-the-scenes roles tied to the company’s integration of the NFL Network.
Employees were notified of the layoffs Tuesday morning. As of late 2025, Disney reportedly employed about 230,000 people worldwide.
Despite the latest cuts, Pixar’s upcoming slate still includes the original feature “Gatto,” directed by “Luca” filmmaker Enrico Casarosa, along with “Incredibles 3.”
Download The California Post App, follow us on social, and subscribe to our newsletters California Post News: Facebook, Instagram, TikTok, X, YouTube, WhatsApp, LinkedIn
California Post Sports Facebook, Instagram, TikTok, YouTube, X
California Post Opinion
California Post Newsletters: Sign up here!
California Post App: Download here!
Home delivery: Sign up here!
Page Six Hollywood: Sign up here!
Arvest Bank Trust Division increased its stake in The Walt Disney Company (NYSE:DIS – Free Report) by 869.6% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 30,746 shares of the entertainment giant’s stock after buying an additional 27,575 shares during the quarter. Arvest Bank Trust Division’s holdings in Walt Disney were worth $2,963,000 as of its most recent SEC filing.
Other institutional investors have also added to or reduced their stakes in the company. J. Stern & Co. LLP lifted its stake in Walt Disney by 9,060.1% in the 4th quarter. J. Stern & Co. LLP now owns 38,135,363 shares of the entertainment giant’s stock valued at $4,338,660,000 after purchasing an additional 37,719,041 shares during the last quarter. Norges Bank acquired a new position in Walt Disney during the fourth quarter worth approximately $2,388,278,000. Viking Global Investors LP bought a new stake in Walt Disney in the second quarter valued at approximately $725,219,000. Price T Rowe Associates Inc. MD boosted its stake in shares of Walt Disney by 62.5% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 13,876,878 shares of the entertainment giant’s stock worth $1,578,773,000 after acquiring an additional 5,334,866 shares during the period. Finally, Arrowstreet Capital Limited Partnership boosted its stake in shares of Walt Disney by 37.8% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 12,569,185 shares of the entertainment giant’s stock worth $1,429,996,000 after acquiring an additional 3,450,198 shares during the period. 65.71% of the stock is currently owned by institutional investors and hedge funds.
Analysts Set New Price Targets A number of research firms have recently issued reports on DIS. Phillip Securities upgraded shares of Walt Disney from a “moderate buy” rating to a “strong-buy” rating in a research note on Monday, May 11th. Weiss Ratings downgraded shares of Walt Disney from a “hold (c+)” rating to a “hold (c)” rating in a research report on Thursday, June 11th. Raymond James Financial decreased their target price on Walt Disney from $119.00 to $111.00 and set an “outperform” rating on the stock in a research report on Thursday, July 2nd. Wells Fargo & Company lowered their target price on Walt Disney from $146.00 to $125.00 and set an “overweight” rating on the stock in a research note on Monday, July 13th. Finally, UBS Group dropped their price target on Walt Disney from $138.00 to $133.00 and set a “buy” rating for the company in a report on Monday. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Walt Disney currently has an average rating of “Moderate Buy” and a consensus price target of $129.00.
Read Our Latest Report on DIS
Walt Disney Price Performance Shares of DIS stock opened at $96.12 on Wednesday. The company has a quick ratio of 0.62, a current ratio of 0.68 and a debt-to-equity ratio of 0.33. The Walt Disney Company has a twelve month low of $92.18 and a twelve month high of $123.40. The company has a market cap of $166.91 billion, a P/E ratio of 15.35, a P/E/G ratio of 1.21 and a beta of 1.39. The business has a fifty day simple moving average of $100.30 and a 200 day simple moving average of $103.22.
Walt Disney (NYSE:DIS – Get Free Report) last announced its quarterly earnings results on Wednesday, May 6th. The entertainment giant reported $1.57 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.49 by $0.08. The company had revenue of $25.17 billion for the quarter, compared to analyst estimates of $24.87 billion. Walt Disney had a net margin of 11.54% and a return on equity of 8.92%. The firm’s revenue was up 6.5% on a year-over-year basis. During the same period in the previous year, the firm posted $1.45 EPS. Walt Disney has set its FY 2026 guidance at 6.640-6.640 EPS. On average, sell-side analysts forecast that The Walt Disney Company will post 6.85 EPS for the current fiscal year.
Trending Headlines about Walt Disney Here are the key news stories impacting Walt Disney this week:
Positive Sentiment: Disney announced a multiyear partnership with Kraft Heinz that will bring branded food and products into Disney theme parks, cruise ships, streaming, and consumer products. Investors may see this as a low-risk way to deepen brand engagement and generate incremental revenue. Disney and Kraft Heinz ink multiyear partnership Positive Sentiment: Analysts are heading into Disney’s earnings with expectations that Experiences and Entertainment remain strong, with UBS and other previews suggesting Disney could beat third-quarter estimates if parks and streaming margins hold up. What You Need To Know Ahead of Walt Disney’s Earnings Release Positive Sentiment: Disney’s upcoming content slate is still drawing attention, including a new premium theatrical format tied to Avengers: Doomsday, which could support box office and franchise monetization. Avengers can’t get an IMAX screen this December, so Disney invented its own premium format to fight back Neutral Sentiment: Several reports noted Disney is streamlining parts of its business, with layoffs affecting Pixar, ESPN, and other divisions. While this can improve cost efficiency, it also signals continued restructuring pressure. New Disney Layoffs Hit Pixar, ESPN and Other Divisions in Streamlining Neutral Sentiment: Disney’s next earnings release is the main near-term event, and investors are waiting to see whether theme parks, streaming profitability, and guidance updates justify a stronger valuation. What You Need To Know Ahead of Walt Disney’s Earnings Release Walt Disney Company Profile (Free Report)
The Walt Disney Company (NYSE: DIS), commonly known as Disney, is a diversified global entertainment and media conglomerate headquartered in Burbank, California. Founded in 1923 by Walt and Roy O. Disney, the company grew from an animation studio into a multi‑national entertainment enterprise known for iconic intellectual property and family‑oriented storytelling. Disney’s operations span film and television production, streaming services, theme parks and resorts, consumer products, and live entertainment.
On the content side, Disney produces and distributes feature films and television programming through a portfolio of studios and labels that includes Walt Disney Pictures, Pixar, Marvel Studios, Lucasfilm and 20th Century Studios, along with broadcast and cable networks such as ABC, FX and National Geographic.
Featured Articles Five stocks we like better than Walt Disney Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible
Receive News & Ratings for Walt Disney Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Walt Disney and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEAssetmark Inc. Sells 1,730 Shares of The Travelers Companies, Inc. $TRV
NEXT HEADLINE »ABN Amro Investment Solutions Grows Holdings in Vertex Pharmaceuticals Incorporated $VRTX
Walt Disney (DIS 0.31%) shares have tumbled. They now trade 52% below their record from March 2021 as of July 20, at a price-to-earnings (P/E) ratio of 15.4. But the business is performing well from a fundamental perspective.
Netflix (NFLX +1.67%) has also faltered. Its shares are 50% off their peak from June 2025. However, they trade at a P/E ratio of 21.3, 38% more expensive than Disney.
Why is the House of Mouse so much cheaper than the streaming pioneer? This is the only answer that I can think of.
Image source: The Motley Fool.
Holding on to the past Investors who have followed Disney for a while know that the stock can never sustainably command a high valuation multiple from the investment community. That's particularly true right now. I believe there are two headwinds that pressure the stock.
The market probably continues to punish the stock because Disney's cable networks, a dying offering, are still a material part of the overall business. During fiscal 2025 (ended Sept. 27, 2025), this segment generated 10% of the company's total revenue and 17% of its operating income.
To be clear, these figures have continued to come down, but they highlight an anchor that prevents Disney from truly letting go of its past. This situation creates a financial impediment, as gains in other segments have to work harder to offset the secular decline of cable TV.
Another headwind relates to the nature of this company. Disney has always been a capital-intensive business. Creating and acquiring content is particularly expensive.
In the physical world, the theme parks and cruise ships require significant capital to maintain and grow. This reality isn't changing, and it sucks up capital that could be returned to shareholders in the form of higher dividends and stock buybacks.
Putting a premium on a pure-play streamer Netflix shares don't look like their usual self these days. They're 50% below their all-time high. The stock immediately sank after the business reported its first-quarter results in April. And it fell again when Netflix gave investors its latest update on July 16.
Slower growth might be one of the main reasons for the dip. Netflix is forecasting a 13.3% year-over-year revenue gain in 2026. That would be the third slowest increase in the past 10 years.
Even during a notable share-price decline, though, Netflix stock commands a 38% premium to Disney. The market clearly highly values a pure-play streaming entity, especially one that pioneered the industry and has long held such a dominant position. Netflix doesn't have legacy assets that are a drag on its financial performance. It has been able to focus fully on streaming entertainment, with a natural evolution into advertising and live events.
Over the past five years, Netflix's revenue increased by 73%, higher than Disney's 62% gain. In the most recent fiscal quarter, the former posted a stellar operating margin of 33.4%, well ahead of the latter's 18.3%. These important financial metrics support the market's more favorable view of Netflix.
Today's Change
(
-0.31
%) $
-0.30
Current Price
$
96.11
Where the opportunity is Investors might be inclined to move quickly to buy Netflix shares while they've fallen so much. But I don't believe this is the right opportunity. Even at a P/E multiple of 21.3, the stock isn't cheap, particularly when competitive forces are creating the most difficult operating environment in the company's history.
Disney looks like the better buy of these two entertainment juggernauts. Its valuation, of course, presents an attractive opportunity for long-term investors to acquire a competitively advantaged company. Consensus analyst estimates call for adjusted diluted earnings per share annualized growth of 11.5% between fiscal 2025 and fiscal 2028, as success in streaming and experiences drive higher profits going forward.
It doesn't look as if Netflix's premium is going away anytime soon. However, Disney's discount is too hard to pass up.
Po týdnech zvýšené volatility v sektoru umělé inteligence hledají investoři čím dál častěji příležitosti mimo nejpopulárnější technologické tituly. Analytici Goldman Sachs proto sestavili seznam společností, které mohou nabídnout atraktivní růst bez přímé závislosti na AI boomu. Mezi favority zařadili firmy těžící ze silných spotřebitelských výdajů, rozmachu cestovního ruchu, zábavního průmyslu či finančních služeb, ale také kvalitní společnosti, jejichž ocenění podle banky neodpovídá jejich fundamentům.
Goldman Sachs se zaměřil na akcie mimo sektor s umělou inteligencí poté, co s ním týdny zmítá volatilita. „Zatímco mnoho správců fondů si zachovalo býčí fundamentální pohled na komplex AI infrastruktury, nedávná volatilita ztížila držení tohoto názoru,“ napsali analytici Goldman Sachs v čele s Benem Sniderem po pátečním uzavření trhu. „Také naše rozhovory s investory se točily kolem výzvy najít investiční příležitosti, které nejsou spojeny s umělou inteligencí.“
Goldman Sachs se tak zaměřil na alternativní investiční témata, mezi nimiž jsou společnosti vázané na spotřebitelské výdaje a vysoce ziskové společnosti obchodované s výraznými slevami. V tabulce, kterou sestavila CNBC, najdete pět společností z obou těchto skupin:
Sázky na štědré výdaje spotřebitelů
Formula One Group Series, akcie vlastněné společností Liberty Media, odrážejí ekonomický zájem o komerční provoz mistrovství světa Formule 1 FIA. Morgan Stanley začátkem tohoto měsíce znovu označila Formuli 1 za nejlepší volbu s cílovou cenou 120 dolarů (což implikuje 21% nárůst oproti pondělnímu uzavření). Analytik Sean Differley označil tento sport za „nedostatečně monetizovaný“ a zdůraznil růstové příležitosti v USA a Číně. Podle údajů LSEG ji 11 ze 13 analytiků, kteří se zabývají Formulí 1, hodnotí doporučením nákup nebo silný nákup.
Live Nation se dostal mezi tipy Goldman Sachs, protože poptávka po živých akcích nadále roste. UBS ve zprávě zveřejněné v pondělí zvýšila cílovou cenu pro Live Nation na 208 dolarů, což naznačuje 15% růst. „Očekáváme, že poptávka po živých akcích zůstane celosvětově silná s dvojciferným růstem fanoušků,“ napsal analytik UBS Batya Levi.
U Walt Disney má 36 analytiků ze 40 doporučení „koupit“ s průměrnou cílovou cenou 129 USD, což naznačuje potenciální zhodnocení o 34 %. Příjmy z reklamy by mělo podpořit jak fotbalové mistrovství světa, tak vyšší výdaje na politické kampaně. Pokles příjmů z tradiční televizní distribuce se zmírňuje díky pomalejšímu odlivu předplatitelů placené televize a ziskovost streamovacích platforem se dále zlepšuje. Na druhou stranu investory znepokojuje konsolidace v tomto sektoru i dlouhodobé dopady AI.
Las Vegas Sands doporučuje 15 analytiků z 21 kupovat s průměrnou 12měsíční cílovou cenou 65,4 USD, což naznačuje potenciál růstu o 44 %. Investice společnosti Sands do neherních aktivit v Macau a Singapuru by měly podpořit návratnost vloženého kapitálu. Oživení cestovního ruchu vedlo k růstu návštěvnosti i příjmů z masového a VIP segmentu. A rozhodnutí Sands upřednostnit návrat kapitálu akcionářům namísto snahy o získání licence v New Yorku se projevilo navýšením programu zpětného odkupu akcií o 1,3 miliardy dolarů a zvýšením dividendy o 20 %.
U hotelového řetězce Marriott International v pátek Morgan Stanley zvýšila cenový cíl z 353 dolarů na 380 dolarů, což oproti pondělnímu uzavření obchodu znamená nárůst o přibližně 4 %. „Společnost Marriott za posledních 10 let transformovala své podnikání, zbavila se vlastněných nemovitostí, odkoupila časově sdílená aktiva a změnila manažerské smlouvy tak, aby byly variabilnější,“ napsal analytik Morgan Stanley Stephen Grambling. „Domníváme se, že tyto změny dramaticky snižují cykličnost, což by mělo vést k dalšímu přehodnocení ratingu.“
Zlevněné hvězdy
Výrobce zařízení pro sledování hladiny cukru v krvi Dexcom vstupuje do výsledkové sezony s potenciálem pozitivního překvapení, domnívá se Bloomberg. Silná adopce senzoru G7 15 Day, růst dodávek a možné získávání podílu na trhu vytvářejí prostor pro překonání odhadů i případné zvýšení výhledu. Z 27 analytiků, kteří akcii pokrývají, jich má 24 nákupní doporučení. Průměrná cílová cena 86 USD naznačuje růst o 15 %.
Akcie MSCI nabízejí podle Goldmanů silný růst zisků, když jejich návratnost v poslední době zaostávala a nyní se obchodují „s velkou slevou“. Jefferies ji začala sledovat s doporučením nákup a stanovila u ní cenový cíl 760 dolarů, což znamená téměř 22% růst oproti pondělnímu uzavření. Analytik Surinder Thind uvedl, že tento globální poskytovatel indexů je obzvláště atraktivní díky „silné konkurenční výhodě, rozšiřování klientské základny, rostoucí expozici na soukromé trhy, viditelně opakujícím se výnosům a omezenému riziku narušení umělé inteligence“.
U Visy má 48 analytiků, kteří tuto platební společnost pokrývá, 46 nákupní doporučení, přičemž průměrná cílová cena se pohybuje o 14 % nad současnou tržní cenou. Rozdělení platebního ekosystému Visy na samostatné služby by jí mohlo zvýšit výnosy na více než 15,4 miliardy dolarů do roku 2027 oproti 10,8 miliardám dolarů v roce 2025. Tyto služby by tak tvořily přibližně 31 % celkových tržeb společnosti. Přestože tato strategie může působit riskantně, mohla by tím rozšířit své postavení napříč alternativními platebními řešeními, jako jsou digitální peněženky, domácí platební schémata nebo převody z účtu na účet.
Stavební společnost Sterling Infrastructures pokrývá jen 8 analytiků, zato všichni u ní mají nákupní doporučení s průměrnou cílovou cenou 953 USD, což naznačuje růst o 37 %. Firma má ale zároveň velmi silnou divizi E-Infrastructure Solutions, která se zaměřuje na specializovanou infrastrukturní výstavbu pro kritická odvětví a která by si mohla zapsat raketový růst díky boomu AI infrastruktury. I přes pokles v posledních týdnech si tato akcie za letošní rok připsala již 118% růst. Hlavním omezením dalšího růstu nebudou zakázky ani poptávka, ale výrobní a realizační kapacity společnosti. Společnost zakončila první čtvrtletí roku 2026 s čistou hotovostí 224 milionů USD a nadále stabilně generuje silný cash flow.
Booking sleduje 41 analytiků, přičemž 39 z nich ho doporučuje nakupovat s průměrnou cílovou cenou 221 USD, která by mohla vynést dalších 24 %. Poptávka po cestování zůstává navzdory ekonomickým a geopolitickým výkyvům velmi odolná. Zároveň firma intenzivně investuje do AI, kterou chce využít při plánování cest, personalizaci nabídek i zákaznické podpoře, aby si udržela konkurenceschopnost v rychle se měnícím prostředí cestovního ruchu.
Allspring Global Investments Holdings LLC grew its position in shares of The Walt Disney Company (NYSE:DIS – Free Report) by 53.8% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 123,202 shares of the entertainment giant’s stock after purchasing an additional 43,081 shares during the period. Allspring Global Investments Holdings LLC’s holdings in Walt Disney were worth $11,896,000 at the end of the most recent quarter.
Several other institutional investors have also recently made changes to their positions in DIS. Pinnacle Bancorp Inc. grew its position in Walt Disney by 1.5% during the fourth quarter. Pinnacle Bancorp Inc. now owns 5,876 shares of the entertainment giant’s stock worth $669,000 after buying an additional 89 shares in the last quarter. Alesco Advisors LLC increased its stake in Walt Disney by 2.7% in the 4th quarter. Alesco Advisors LLC now owns 3,782 shares of the entertainment giant’s stock worth $430,000 after acquiring an additional 99 shares during the last quarter. Advisors Management Group Inc. ADV raised its holdings in shares of Walt Disney by 4.6% in the 1st quarter. Advisors Management Group Inc. ADV now owns 2,266 shares of the entertainment giant’s stock valued at $218,000 after acquiring an additional 100 shares in the last quarter. Providence Wealth Advisors LLC raised its holdings in shares of Walt Disney by 1.1% in the 1st quarter. Providence Wealth Advisors LLC now owns 9,192 shares of the entertainment giant’s stock valued at $888,000 after acquiring an additional 100 shares in the last quarter. Finally, China Universal Asset Management Co. Ltd. boosted its position in shares of Walt Disney by 2.2% during the 4th quarter. China Universal Asset Management Co. Ltd. now owns 4,688 shares of the entertainment giant’s stock valued at $537,000 after acquiring an additional 102 shares during the last quarter. Institutional investors own 65.71% of the company’s stock.
Analysts Set New Price Targets DIS has been the topic of several research analyst reports. Needham & Company LLC restated a “buy” rating and issued a $125.00 price objective on shares of Walt Disney in a research report on Friday, June 12th. JPMorgan Chase & Co. boosted their price target on shares of Walt Disney from $139.00 to $140.00 and gave the stock an “overweight” rating in a research note on Tuesday, June 30th. Guggenheim increased their price target on shares of Walt Disney from $115.00 to $120.00 and gave the stock a “buy” rating in a report on Thursday, May 7th. UBS Group lowered their price objective on shares of Walt Disney from $138.00 to $133.00 and set a “buy” rating on the stock in a research report on Monday. Finally, Benchmark reaffirmed a “buy” rating on shares of Walt Disney in a report on Monday. One analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Walt Disney currently has a consensus rating of “Moderate Buy” and an average target price of $129.00.
Read Our Latest Stock Analysis on Walt Disney
Walt Disney Stock Performance NYSE:DIS opened at $96.12 on Wednesday. The business has a 50 day moving average of $100.30 and a 200 day moving average of $103.22. The company has a market capitalization of $166.91 billion, a price-to-earnings ratio of 15.35, a PEG ratio of 1.21 and a beta of 1.39. The Walt Disney Company has a 1-year low of $92.18 and a 1-year high of $123.40. The company has a debt-to-equity ratio of 0.33, a current ratio of 0.68 and a quick ratio of 0.62.
Walt Disney (NYSE:DIS – Get Free Report) last announced its quarterly earnings data on Wednesday, May 6th. The entertainment giant reported $1.57 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.49 by $0.08. The company had revenue of $25.17 billion during the quarter, compared to analysts’ expectations of $24.87 billion. Walt Disney had a net margin of 11.54% and a return on equity of 8.92%. The firm’s revenue was up 6.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.45 EPS. Walt Disney has set its FY 2026 guidance at 6.640-6.640 EPS. On average, sell-side analysts predict that The Walt Disney Company will post 6.85 earnings per share for the current fiscal year.
Trending Headlines about Walt Disney Here are the key news stories impacting Walt Disney this week:
Positive Sentiment: Disney announced a multiyear partnership with Kraft Heinz that will bring branded food and products into Disney theme parks, cruise ships, streaming, and consumer products. Investors may see this as a low-risk way to deepen brand engagement and generate incremental revenue. Disney and Kraft Heinz ink multiyear partnership Positive Sentiment: Analysts are heading into Disney’s earnings with expectations that Experiences and Entertainment remain strong, with UBS and other previews suggesting Disney could beat third-quarter estimates if parks and streaming margins hold up. What You Need To Know Ahead of Walt Disney’s Earnings Release Positive Sentiment: Disney’s upcoming content slate is still drawing attention, including a new premium theatrical format tied to Avengers: Doomsday, which could support box office and franchise monetization. Avengers can’t get an IMAX screen this December, so Disney invented its own premium format to fight back Neutral Sentiment: Several reports noted Disney is streamlining parts of its business, with layoffs affecting Pixar, ESPN, and other divisions. While this can improve cost efficiency, it also signals continued restructuring pressure. New Disney Layoffs Hit Pixar, ESPN and Other Divisions in Streamlining Neutral Sentiment: Disney’s next earnings release is the main near-term event, and investors are waiting to see whether theme parks, streaming profitability, and guidance updates justify a stronger valuation. What You Need To Know Ahead of Walt Disney’s Earnings Release About Walt Disney (Free Report)
The Walt Disney Company (NYSE: DIS), commonly known as Disney, is a diversified global entertainment and media conglomerate headquartered in Burbank, California. Founded in 1923 by Walt and Roy O. Disney, the company grew from an animation studio into a multi‑national entertainment enterprise known for iconic intellectual property and family‑oriented storytelling. Disney’s operations span film and television production, streaming services, theme parks and resorts, consumer products, and live entertainment.
On the content side, Disney produces and distributes feature films and television programming through a portfolio of studios and labels that includes Walt Disney Pictures, Pixar, Marvel Studios, Lucasfilm and 20th Century Studios, along with broadcast and cable networks such as ABC, FX and National Geographic.
Further Reading Five stocks we like better than Walt Disney Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible Want to see what other hedge funds are holding DIS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for The Walt Disney Company (NYSE:DIS – Free Report).
Receive News & Ratings for Walt Disney Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Walt Disney and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINETractor Supply Company $TSCO Holdings Trimmed by California Public Employees Retirement System
NEXT HEADLINE »O’Reilly Automotive, Inc. $ORLY Shares Bought by Andra AP fonden
Netflix gave streaming investors a jolt last week. The industry leader reported second-quarter results that were fine on their own, but its forecast called for revenue growth to slow again in the third quarter, and the stock, already deep in a yearlong slide, fell further on Friday.
Walt Disney (DIS 0.31%) shareholders know the feeling. Shares of the entertainment giant have fallen about 15% in 2026, to roughly $96 as of this writing, and they trade about 22% off their 52-week high.
But there's an irony in the timing. While the market frets over the streaming leader's slowing growth, Disney's own streaming business has been moving the other direction -- toward faster growth and higher profits.
So, with the leader stumbling, is the House of Mouse the contrarian buy in streaming?
Image source: Walt Disney.
Behind the decline Disney's sell-off this year wasn't baseless. In the company's fiscal first quarter of 2026 (the period ended Dec. 27, 2025), total segment operating income fell 9% year over year. The biggest problem was the entertainment segment, where operating income dropped 35% to $1.1 billion as programming, production, and marketing costs grew faster than revenue. The sports segment's operating income fell 23%, too, dinged by about $110 million from YouTube TV temporarily dropping Disney's networks in a carriage dispute.
Layer on the long-running decline of linear television and management's own caution about consumers (Disney says it is "mindful of the macroeconomic uncertainty consumers are facing today"), and investors had reasons to sour on the stock.
Streaming profits are finally showing up But the fiscal second quarter (ended March 28, 2026) showed a company in better shape than the stock price suggests. Revenue increased 7% year over year to $25.2 billion, and total segment operating income grew 4%. Non-GAAP (adjusted) earnings per share rose 8% to $1.57.
Streaming was the standout. Disney's subscription streaming revenue grew 13% year over year, accelerating from 11% growth in fiscal Q1, with subscription fees up 16%. And the streaming business's operating income nearly doubled year over year, climbing from $310 million to $582 million. That works out to a streaming operating margin of about 11%, up from about 6% a year earlier.
The trend within the year matters as much as the comparison. Streaming operating income went from $450 million in the fiscal first quarter to $582 million in the second, and the margin stepped up alongside it.
And Disney's content engine is helping. Zootopia 2 generated $1.9 billion at the global box office, and the franchise has since surpassed 1 billion hours streamed on Disney+. Hits like that can feed the company's parks and merchandise businesses for years to come.
The parks themselves are holding up as well. Experiences revenue rose 7% in the fiscal second quarter, and the segment's operating income grew 5%. Management called current demand at its domestic parks healthy, and it expects attendance to improve in fiscal Q3 after a 1% dip in the March quarter tied partly to soft international visitation.
Put it together, and management expects fiscal 2026 adjusted earnings per share to grow about 12%, excluding the benefit of an extra week in the fiscal year. The company is also targeting at least $8 billion in share repurchases in fiscal 2026.
Today's Change
(
-0.31
%) $
-0.30
Current Price
$
96.11
Yet the stock trades at about 13 times forward earnings. That's about two-thirds of what investors are paying for Netflix's forward earnings -- for the streaming business that's accelerating, not the one that's slowing down.
Of course, Disney's cheaper multiple partly reflects its baggage. The decline of linear TV remains a headwind, and those networks still generate profits that streaming must replace. A weakening consumer could hit the parks, which remain Disney's biggest source of operating income. And film slates are hit-driven, so the box office may disappoint in any given quarter.
With that said, the market seems to be pricing Disney as if its streaming turnaround isn't happening, even as the numbers show that turnaround gaining speed. To me, that makes Disney the more interesting streaming stock today -- a profitable, diversified entertainment company at 13 times forward earnings, backed by guided double-digit earnings growth and a large buyback program.
In short, I think the pessimism has overshot, and Disney looks like a contrarian buy here. Though I'd start with a modest position. With all of this said, we'll find out more soon; Disney's fiscal third-quarter report is due in early August.
Andra AP fonden increased its stake in shares of The Walt Disney Company (NYSE:DIS – Free Report) by 3.3% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 307,920 shares of the entertainment giant’s stock after purchasing an additional 9,920 shares during the quarter. Andra AP fonden’s holdings in Walt Disney were worth $29,677,000 as of its most recent SEC filing.
Several other institutional investors also recently bought and sold shares of the company. J. Stern & Co. LLP raised its position in Walt Disney by 9,060.1% in the fourth quarter. J. Stern & Co. LLP now owns 38,135,363 shares of the entertainment giant’s stock worth $4,338,660,000 after acquiring an additional 37,719,041 shares in the last quarter. Norges Bank acquired a new stake in shares of Walt Disney in the fourth quarter valued at about $2,388,278,000. Viking Global Investors LP purchased a new stake in Walt Disney during the second quarter worth about $725,219,000. Price T Rowe Associates Inc. MD boosted its holdings in Walt Disney by 62.5% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 13,876,878 shares of the entertainment giant’s stock worth $1,578,773,000 after buying an additional 5,334,866 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership grew its position in Walt Disney by 37.8% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 12,569,185 shares of the entertainment giant’s stock worth $1,429,996,000 after buying an additional 3,450,198 shares during the period. 65.71% of the stock is owned by institutional investors and hedge funds.
More Walt Disney News Here are the key news stories impacting Walt Disney this week:
Positive Sentiment: UBS expects Disney to beat third-quarter earnings estimates, with revenue and operating income trends supported by stronger experiences and entertainment results, and says the company can likely keep its fiscal 2026 guidance. Disney Poised for Third-Quarter Earnings Beat on Experiences, Entertainment Strength, UBS Says Positive Sentiment: Another pre-earnings note highlighted improving earnings growth as first-half headwinds fade, with analysts looking for Disney’s parks business and streaming margins to remain key drivers. Disney streaming margins and parks business in focus ahead of earnings Neutral Sentiment: UBS lowered its price target to $133 from $138 but kept a buy rating, suggesting the firm still sees meaningful upside even after trimming its valuation view. Walt Disney (DIS) PT Lowered to $133 at UBS Neutral Sentiment: Several other articles were more thematic or consumer-interest oriented, including Disney-themed merchandise, travel, and fan-content pieces, which are unlikely to move the stock on their own. Hallmark Unveils Disney World Christmas Collection Inspired by Upcoming Holiday Movie Negative Sentiment: Disney remains in a pre-earnings wait-and-see phase, with investors still focused on whether results will justify the recent pullback in the shares and offset lingering concerns around execution in media and content. What You Need To Know Ahead of Walt Disney’s Earnings Release Walt Disney Stock Down 1.3% Shares of NYSE:DIS opened at $96.39 on Tuesday. The company has a quick ratio of 0.62, a current ratio of 0.68 and a debt-to-equity ratio of 0.33. The company has a market capitalization of $167.38 billion, a P/E ratio of 15.40, a P/E/G ratio of 1.23 and a beta of 1.39. The Walt Disney Company has a 52-week low of $92.18 and a 52-week high of $123.40. The stock’s fifty day simple moving average is $100.50 and its 200-day simple moving average is $103.34.
Walt Disney (NYSE:DIS – Get Free Report) last issued its quarterly earnings results on Wednesday, May 6th. The entertainment giant reported $1.57 EPS for the quarter, topping analysts’ consensus estimates of $1.49 by $0.08. The business had revenue of $25.17 billion during the quarter, compared to the consensus estimate of $24.87 billion. Walt Disney had a net margin of 11.54% and a return on equity of 8.92%. The company’s quarterly revenue was up 6.5% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.45 earnings per share. Walt Disney has set its FY 2026 guidance at 6.640-6.640 EPS. As a group, equities research analysts forecast that The Walt Disney Company will post 6.85 earnings per share for the current fiscal year.
Analyst Upgrades and Downgrades A number of research firms have recently issued reports on DIS. Benchmark reiterated a “buy” rating on shares of Walt Disney in a research report on Monday. Rosenblatt Securities reaffirmed a “buy” rating and issued a $126.00 price objective on shares of Walt Disney in a research note on Tuesday, July 7th. Phillip Securities upgraded Walt Disney from a “moderate buy” rating to a “strong-buy” rating in a research report on Monday, May 11th. UBS Group lowered their target price on Walt Disney from $138.00 to $133.00 and set a “buy” rating on the stock in a report on Monday. Finally, Needham & Company LLC restated a “buy” rating and issued a $125.00 price target on shares of Walt Disney in a research report on Friday, June 12th. One research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $129.00.
Read Our Latest Report on DIS
Walt Disney Profile (Free Report)
The Walt Disney Company (NYSE: DIS), commonly known as Disney, is a diversified global entertainment and media conglomerate headquartered in Burbank, California. Founded in 1923 by Walt and Roy O. Disney, the company grew from an animation studio into a multi‑national entertainment enterprise known for iconic intellectual property and family‑oriented storytelling. Disney’s operations span film and television production, streaming services, theme parks and resorts, consumer products, and live entertainment.
On the content side, Disney produces and distributes feature films and television programming through a portfolio of studios and labels that includes Walt Disney Pictures, Pixar, Marvel Studios, Lucasfilm and 20th Century Studios, along with broadcast and cable networks such as ABC, FX and National Geographic.
Read More Five stocks we like better than Walt Disney The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story
Receive News & Ratings for Walt Disney Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Walt Disney and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEAndra AP fonden Has $24.08 Million Position in Kinross Gold Corporation $KGC
NEXT HEADLINE »Andra AP fonden Acquires 14,360 Shares of The Sherwin-Williams Company $SHW
Walt Disney Co (NYSE:DIS, XETRA:WDP) is scheduled to report fiscal third quarter results on August 5, with UBS analysts expecting accelerating earnings growth as first-half headwinds ease and forecasting the company will maintain its fiscal 2026 guidance.
UBS expects Disney to report fiscal third-quarter revenue of $25.4 billion and segment operating income of $5.16 billion, compared with Wall Street expectations of $5.24 billion and company guidance of about $5.3 billion.
The firm forecasts earnings per share of $1.91, above the consensus estimate of $1.85 and up 18% from a year earlier.
The analysts wrote that growth should be supported by high single-digit expansion in the Experiences segment and double-digit growth in the company's streaming business, while Sports operating income is expected to decline by the mid-teens due to higher sports rights costs. They also expect box office performance to remain soft overall.
For fiscal 2026, UBS continues to forecast earnings per share of $6.90, representing 16% year-over-year growth and broadly in line with Disney's guidance. The estimate includes a roughly 4% benefit from an extra week in the fiscal fourth quarter and is expected to be driven by continued strength in Experiences, improving Sports profitability and streaming margins above 10%.
In Experiences, UBS expects revenue to rise 8.7% year over year and operating income to increase 9.6% as the business laps upfront cruise costs and pre-opening expenses related to World of Frozen. The analysts expect growth to accelerate further in the fourth quarter before receiving an additional boost from the extra fiscal week.
UBS believes domestic attendance improved during the quarter, with attendance roughly flat from a year earlier after declining 1% in the prior quarter, as comparisons related to Epic Universe's opening and international visitation became less challenging. Per-capita guest spending is expected to remain strong, increasing about 4% year over year.
Within Entertainment, UBS forecasts revenue growth of 8.7% and operating income growth of 48% to approximately $1.5 billion, driven by streaming gains and the consolidation of Fubo. The analysts expect streaming subscription revenue to increase 11% year over year, while streaming operating margins improve by 350 basis points from a year earlier to 10.1%, despite sequential pressure from higher international content spending.
The analysts also expect mixed theatrical performance during the quarter, citing stronger box office results from The Devil Wears Prada 2 and Toy Story 5, offset by weaker performances from Star Wars: The Mandalorian & Grogu and the live-action Moana.
In Sports, UBS forecasts revenue growth of 4.7%, including an approximately 3% contribution from NFL Network, while operating income is expected to decline 14% to $891 million as double-digit growth in sports rights expenses, including NBA and WWE contracts, weighs on profitability.
The analysts expect advertising revenue to increase more than 10% on stronger NBA ratings and noted that Disney recorded its first quarter of year-over-year television viewership growth since the first quarter of 2024, helped by NBA Finals audiences. UBS expects subscription and affiliate revenue growth of around 5%, with streaming gains partly offset by the NFL Network no longer being carried on Comcast's Xfinity platform.
UBS also noted that management expects mid-single-digit operating income growth for the Sports segment for the full fiscal year, with the firm anticipating a stronger fourth quarter supported by easier comparisons related to sports rights costs and last year's ESPN direct-to-consumer launch expenses.
Walt Disney Co (NYSE:DIS, XETRA:WDP) is scheduled to report fiscal third quarter results on August 5, with UBS analysts expecting accelerating earnings growth as first-half headwinds ease and forecasting the company will maintain its fiscal 2026 guidance.
UBS expects Disney to report fiscal third-quarter revenue of $25.4 billion and segment operating income of $5.16 billion, compared with Wall Street expectations of $5.24 billion and company guidance of about $5.3 billion.
The firm forecasts earnings per share of $1.91, above the consensus estimate of $1.85 and up 18% from a year earlier.
The analysts wrote that growth should be supported by high single-digit expansion in the Experiences segment and double-digit growth in the company's streaming business, while Sports operating income is expected to decline by the mid-teens due to higher sports rights costs. They also expect box office performance to remain soft overall.
For fiscal 2026, UBS continues to forecast earnings per share of $6.90, representing 16% year-over-year growth and broadly in line with Disney's guidance. The estimate includes a roughly 4% benefit from an extra week in the fiscal fourth quarter and is expected to be driven by continued strength in Experiences, improving Sports profitability and streaming margins above 10%.
In Experiences, UBS expects revenue to rise 8.7% year over year and operating income to increase 9.6% as the business laps upfront cruise costs and pre-opening expenses related to World of Frozen. The analysts expect growth to accelerate further in the fourth quarter before receiving an additional boost from the extra fiscal week.
UBS believes domestic attendance improved during the quarter, with attendance roughly flat from a year earlier after declining 1% in the prior quarter, as comparisons related to Epic Universe's opening and international visitation became less challenging. Per-capita guest spending is expected to remain strong, increasing about 4% year over year.
Within Entertainment, UBS forecasts revenue growth of 8.7% and operating income growth of 48% to approximately $1.5 billion, driven by streaming gains and the consolidation of Fubo. The analysts expect streaming subscription revenue to increase 11% year over year, while streaming operating margins improve by 350 basis points from a year earlier to 10.1%, despite sequential pressure from higher international content spending.
The analysts also expect mixed theatrical performance during the quarter, citing stronger box office results from The Devil Wears Prada 2 and Toy Story 5, offset by weaker performances from Star Wars: The Mandalorian & Grogu and the live-action Moana.
In Sports, UBS forecasts revenue growth of 4.7%, including an approximately 3% contribution from NFL Network, while operating income is expected to decline 14% to $891 million as double-digit growth in sports rights expenses, including NBA and WWE contracts, weighs on profitability.
The analysts expect advertising revenue to increase more than 10% on stronger NBA ratings and noted that Disney recorded its first quarter of year-over-year television viewership growth since the first quarter of 2024, helped by NBA Finals audiences. UBS expects subscription and affiliate revenue growth of around 5%, with streaming gains partly offset by the NFL Network no longer being carried on Comcast's Xfinity platform.
UBS also noted that management expects mid-single-digit operating income growth for the Sports segment for the full fiscal year, with the firm anticipating a stronger fourth quarter supported by easier comparisons related to sports rights costs and last year's ESPN direct-to-consumer launch expenses.
By You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Michael Burry, the investor of "The Big Short" fame. Bloomberg/Getty Images Michael Burry says there's a glaring difference between two of the world's most powerful media companies.
"Disney produces wine. Netflix produces milk," the investor of "The Big Short" fame said in a Substack post on Friday.
"One lasts and even gets better with time, one is just fine for now, but most certainly does not get better with age," he added.
Burry, who pivoted from running a hedge fund to writing about his personal investments late last year, was making the case that Disney-owned properties such as "Star Wars," "The Avengers," "Toy Story," and "Moana" have more staying power than Netflix series such as "Stranger Things," "Squid Game," and "KPop Demon Hunters."
He's often applied the "evergreen test" to Netflix, he said, to probe whether it makes TV shows and movies that are "long-lasting, watchable on repeat, across generations."
"Disney, Pixar, these produce evergreen content," he wrote. "Even Warner Brothers with Harry Potter and a few others."
Burry wrote that the viral success of "Suits" on Netflix a few years ago benefited the show's creator more than its host. "Netflix's other content has not struck me as evergreen," he added.
Disney is known for creating popular intellectual property such as "Frozen" then monetizing it across its sprawling empire of movies, TV shows, theme parks, resorts, cruises, retail stores, video games, and more.
Netflix's core offering is its streaming platform, which offers both original and licensed content.
Burry, most famous for his monster bet against the mid-2000s housing bubble, said he views Netflix as "another player in a much more distributed and competitive streaming field."
The bargain hunter said Netflix stock didn't strike him as an obvious deal even after slumping from over $130 last summer. It closed at $69 on Friday, down nearly 50% from its peak.
Netflix stock has been hit by slowing revenue and subscriber growth, as fierce competition has made it harder to attract and retain customers and preserve its margins.
"The competition came for Netflix," Burry tweeted in April 2022, after the company's subscriber base shrank for the first time in more than a decade.
Read next
Theron Mohamed You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Theron Mohamed is a London-based correspondent on the Trending team at Business Insider. His coverage spans finance, investing, wealth, markets, and the economy.Theron joined BI in 2019 as a reporter at Markets Insider and rose to the rank of correspondent before moving to the Trending team in 2024. He previously covered tech, media, and telecom stocks for Investors Chronicle magazine and had a brief stint on the Financial Times' Data team. He interned at the Wall Street Journal in New York where he primarily wrote for Heard on the Street.Theron has freelanced for The Independent, The Telegraph, WIRED, and several smaller publications. He holds an undergraduate degree in geography from the London School of Economics, and a master's degree in journalism from Columbia University.Theron often covers Warren Buffett, Michael Burry, Jeremy Grantham and other top-flight investors. He also writes about the world's wealthiest people and shares financial advice from all manner of rich and successful people.Email Theron at [email protected] and follow him on X @theron_mohamed.Expertise
Corporate financeStocks and investingWealth and philanthropyBusiness historyUS economyWarren Buffett and Berkshire HathawayPopular articlesAl Pacino says he went from $50 million to broke, joining a long list of stars who've experienced money troublesAn oil tycoon sold his company for $26 billion this year — but died before the deal closedWarren Buffett drinks 5 cans of Coke a day — here's why he switched from Pepsi after nearly 50 yearsMeet the 16 people in the $100 billion club — who are jointly worth more than Amazon or Google'Big Short' investor Michael Burry kept quiet, piled into China tech, and won big with a stock bet in 2024Bill Gates' former assistant is worth $154 billion — and could soon be richer than the Microsoft cofounderHoward Schultz talked about Steve Jobs, trademarking the latte, and Starbucks' problems in a marathon interviewWarren Buffett just made a rare trip to Tokyo. Here's the story of a disastrous sushi dinner that made him swear off Japanese food forever.21 states where recession bells are ringing after unemployment jumpsWarren Buffett is building the Noah's Ark of rainy-day funds. Here's why he's stacked up more than $300 billion.The 'Shark Tank' star Kevin O'Leary warns couples not to combine finances: 'I don't care how in love you are'The Waltons are once again the world's wealthiest family, beating out Gulf royalty and fashion dynasties
Finance Media Stocks More Disney Netflix TV Shows Movies Investing
Walt Disney (DIS - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this entertainment company have returned -6%, compared to the Zacks S&P 500 composite's +0.6% change. During this period, the Zacks Media Conglomerates industry, which Disney falls in, has lost 0.6%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Disney is expected to post earnings of $1.88 per share, indicating a change of +16.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.5% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $6.85 points to a change of +15.5% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $7.45 indicates a change of +8.8% from what Disney is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Disney is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Disney, the consensus sales estimate for the current quarter of $25.41 billion indicates a year-over-year change of +7.4%. For the current and next fiscal years, $101.71 billion and $106.38 billion estimates indicate +7.7% and +4.6% changes, respectively.
Last Reported Results and Surprise HistoryDisney reported revenues of $25.17 billion in the last reported quarter, representing a year-over-year change of +6.5%. EPS of $1.57 for the same period compares with $1.45 a year ago.
Compared to the Zacks Consensus Estimate of $25.06 billion, the reported revenues represent a surprise of +0.41%. The EPS surprise was +5.37%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates just once over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Disney is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Disney. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Spanning tees, crewnecks, and sweatshirts, the Disney | Champion NFL Collection will ultimately represent all 32 NFL teams. The first eight team-character matchups feature fan-favorite characters from Disney, Pixar, Star Wars, and Marvel.
The Walt Disney Company has a storied history with sports from Walt Disney’s animated cartoons of characters participating in various games to the 1996 acquisition of ABC (which owned ESPN at the time).
While live broadcasts have been a cornerstone of Disney’s sports strategy, the company is deepening its dive into sports fandom with a new partnership with the National Football League (NFL). Disney, the NFL, Champion and Fanatics are pairing all 32 NFL teams with Disney characters in a new apparel collection, as part of Disney and ESPN’s “Year of the Super Bowl” initiative.
“At their core, both NFL and Disney are built on passionate communities that bring people together across generations. This collaboration creates a natural entry point for fans to express multiple interests at once, whether they’re representing their favorite team, their favorite Disney characters or both,” Paul Gitter, executive vice president of global commercialization for Disney Consumer Products, told me.
The apparel launch is centered around the Disney Fan Draft, a live reimagining of the NFL Draft hosted by NFL Commissioner Roger Goodell and sports journalist and broadcaster Taylor Rooks.
Each team is paired with a Disney, Marvel, Star Wars or Pixar character that represents the culture of each NFL team. For example, the Buffalo Bills have been matched with Disney’s Beast from Beauty and the Beast, while the New England Patriots’ Fan Draft pick is Marvel’s Captain America.
MORE FOR YOU
“In today’s culture, style is an expression of fandom,” NFL senior vice president of consumer products and licensing Casey Collins said. “Bringing together the powerful branding of NFL teams and Disney characters reflects our commitment to living at the intersection of sports and fashion. We are excited to take this collection to market.”
Creating An Overlapping Ecosystem For FansSpanning tees, crewnecks, and sweatshirts, the Disney | Champion NFL Collection will ultimately represent all 32 NFL teams. The first eight team-character matchups feature fan-favorite characters from Disney, Pixar, Star Wars, and Marvel.
“Sports are a powerful way to connect with fans through forums that are already part of their daily lives. Fandoms increasingly overlap across entertainment, sports and lifestyle, which gives us new opportunities for consumers to engage with Disney in ways that feel relevant, authentic and culturally connected,” says Gitter.
According to Sportico, each NFL team received about $433 million in 2024 from media, sponsorships and merchandising through the league’s national revenue share program. Additionally, FinanceBuzz found the league-wide average spend on merchandise per fan is about $144.
Even more so, the entry of a pop culture phenomenon like Disney into the sports arena is a big deal. This creates an easy gateway for sports-curious Disney fans to enter the field, ring, grid, or court without needing too much background knowledge about the sport. These new fans are often more interested in the lifestyle and cultural moments of an event rather than points or standings.
Still, some casual supporters end up converting into lifelong sport enthusiasts.
Beyond the NFL product launch, Disney’s integration into the sports world is becoming more prominent. Just last year, Disney launched its multi-year collaboration with Formula 1, plus it has ongoing relationships with the National Basketball Association, College GameDay and more.
“Sports are an increasingly important part of culture and consumer engagement, and this launch reflects that. We’ve seen strong momentum through collaboration and activations across Formula 1, MLB, NBA and NFL is a natural extension of that strategy as we continue creating products and meaningful experiences that connect fans with Disney storytelling,” says Gitter.
The Federal Communications Commission is preparing to rule that ABC’s “The View” is not a bona fide news program, a decision that would upend more than two decades of precedent and subject the Disney-owned daytime talk show to federal equal-time rules for political candidates, according to a report.
Bloomberg reported Wednesday that the FCC is also expected to escalate a separate investigation into Disney’s broadcast television licenses, moving the matter toward an administrative hearing that could ultimately threaten ABC-owned stations in New York, Los Angeles and other major markets.
The anticipated rulings, which people familiar with the matter told Bloomberg could come before Labor Day, would represent the most aggressive regulatory action against a major US broadcaster in decades and mark a significant victory for FCC Chairman Brendan Carr’s effort to overhaul how the agency polices political programming.
The Federal Communications Commission is poised to rule that ABC’s “The View” is not a bona fide news program, according to a report. American Broadcasting Companies, Inc. via AP If the FCC strips “The View” of its longstanding news exemption, the program generally would have to offer rival candidates comparable airtime when it interviews someone running for office — a requirement ABC argues would fundamentally alter its editorial discretion.
Disney is expected to challenge any adverse rulings, according to Bloomberg.
The FCC Media Bureau’s ruling on “The View” could be appealed to the full FCC and then to federal court, while the separate license proceeding could eventually be heard by FCC Chairman Brendan Carr or the full commission before any judicial appeal.
The Post has sought comment from ABC and its parent company, Disney, as well as from the FCC.
The dispute began after “The View” interviewed Texas Democratic Senate candidate James Talarico in February, prompting questions from the FCC about whether rival candidates were entitled to equal airtime under federal broadcast law.
Carr subsequently opened an inquiry into whether “The View” qualifies for the equal-time exemption afforded to bona fide news interview programs.
FCC Chairman Brendan Carr has launched parallel reviews of ABC’s broadcast licenses and “The View’s” status as a bona fide news program. REUTERS
The FCC is reportedly preparing to escalate its review of Disney’s broadcast licenses for ABC-owned television stations. Getty Images In May, ABC and its Houston affiliate asked the FCC to reaffirm a 2002 agency ruling that designated “The View” a bona fide news interview program exempt from the equal-time requirement.
ABC escalated the fight earlier this month, arguing in reply comments that the FCC was attempting to insert itself into the network’s editorial decisions.
“The First Amendment does not permit the government to sit in an editor’s chair,” the ABC filing states.
Semafor reported earlier this month that “The View” has quietly scaled back bookings of candidates running in competitive races while the FCC’s review remains pending.
ABC parent company Disney has vowed to fight any adverse ruling from the FCC. AP The outlet also reported that producers declined a request from New York City Mayor Zohran Mamdani’s team to host the mayor alongside Democratic congressional nominees Darializa Avila Chevalier and Claire Valdez while proceeding cautiously amid the FCC inquiry.
Meanwhile, conservative organizations including the Media Research Center, America First Legal, the Center for American Rights and the Article III Project have urged the FCC to deny renewal of ABC’s broadcast licenses, accusing the network of political bias and failing to serve the public interest.
Walt Disney (DIS - Free Report) ended the recent trading session at $97.15, demonstrating a +1.34% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.38%. On the other hand, the Dow registered a gain of 0.29%, and the technology-centric Nasdaq increased by 0.62%.
Shares of the entertainment company witnessed a loss of 5.34% over the previous month, trailing the performance of the Consumer Discretionary sector with its loss of 1.13%, and the S&P 500's gain of 1.61%.
The investment community will be closely monitoring the performance of Walt Disney in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.88, marking a 16.77% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $25.41 billion, up 7.44% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.86 per share and a revenue of $101.72 billion, signifying shifts of +15.68% and +7.73%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Walt Disney. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.04% upward. Currently, Walt Disney is carrying a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Walt Disney has a Forward P/E ratio of 13.98 right now. This expresses a discount compared to the average Forward P/E of 15.47 of its industry.
We can also see that DIS currently has a PEG ratio of 1.21. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Media Conglomerates industry stood at 0.6 at the close of the market yesterday.
The Media Conglomerates industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 73, finds itself in the top 30% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow DIS in the coming trading sessions, be sure to utilize Zacks.com.
Shares of Walt Disney (DIS +0.70%) have dropped 47% in the past five years (as of July 13). And they currently trade 52% below their March 2021 peak. This has been a difficult streak for investors to deal with.
But this entertainment stock can now be purchased at a forward price-to-earnings ratio of 12.8. This represents a notable 41% discount to the S&P 500 index.
Why are Disney shares so much cheaper than the popular benchmark? This is the only likely explanation.
Image source: The Motley Fool.
Spending to drive growth It's reasonable to assume that the secular decline of the company's cable TV networks is the culprit for the stock's cheap valuation. However, this doesn't seem to be the case. Even when cable TV household penetration was at its peak in the U.S. in 2010, Disney's stock didn't trade for more than 20 times trailing earnings. Even in good times, the linear networks don't appear to have had a meaningful impact on the valuation.
Consequently, I believe the market views the stock negatively due to its high capital intensity. On the entertainment side, Disney invests aggressively in its content machine. This includes live sports and high-profile films. For instance, the company signed a new 11-year rights deal in 2024 with the National Basketball Association valued at $2.6 billion per year. Plus, Disney's budget for movie releases can often run into the hundreds of millions of dollars.
For the business to maintain its competitive position in a crowded market, it has to keep spending. Otherwise, Disney risks losing viewership.
The experiences segment also requires significant capital expenditures. In September 2023, the company announced a massive $60 billion 10-year investment plan to add new attractions and expand the cruise fleet. This doubled Disney's original spending outlook.
Investors generally prefer capital-light businesses that can grow without much reinvestment. Disney just isn't structured this way.
Today's Change
(
0.70
%) $
0.68
Current Price
$
96.55
Shareholder capital returns Disney currently pays an annual dividend of $1.50 per share. In the first two quarters of fiscal 2026, the company's dividends totaled $1.3 billion. And it has a share buyback program in place, with $8 billion in repurchases planned for this fiscal year.
If the business didn't have to reinvest so much money in its operations, the board of directors and management team would be able to funnel even more cash back to investors. This capital allocation policy would boost shareholder returns. And that might drive the forward P/E multiple higher.
While Disney is certainly a high-quality company, history says the market never sustainably rewards the stock with a premium valuation. It's impossible to know if sentiment will ever change.
Key Takeaways June CPI fell 0.4%, easing rate hike fears and lifting focus on consumer discretionary stocks.AOUT, DIS, MCFT, SHOO and LION are highlighted as picks amid cooling inflation and easing oil prices.Lower inflation may give the Fed more flexibility on rates, supporting consumer spending and the economy. Inflation fell sharply in June, bringing major relief for both consumers and the Federal Reserve. The consumer price index (CPI), a key gauge for measuring the cost of goods and services across the nation’s economy, recorded its biggest decline in more than six years, the Commerce Department reported.
The decline in inflation is likely to alleviate fears of an interest rate hike by the Federal Reserve in the near term. Wall Street has remained volatile over the past few weeks, and the recent inflation reading is expected to boost investors’ confidence and bring some stability to markets.
Given this scenario, we recommend buying four consumer discretionary stocks, namely, American Outdoor Brands, Inc. (AOUT - Free Report) , The Walt Disney Company (DIS - Free Report) , MasterCraft Boat Holdings, Inc. (MCFT - Free Report) , Steven Madden, Ltd. (SHOO - Free Report) and Lionsgate Studios Corp. (LION - Free Report) .
Inflation Finally EasesCPI fell 0.4% sequentially in June, after increasing 0.5% in May and surpassing analysts’ expectations of a decline of 0.2%. Year over year, CPI fell to 3.5% in June, beating analysts’ expectations of a reading of 3.8%. The decline follows a reading of 4.2% in May. The monthly decline in CPI was the biggest since April 2020.
Core CPI, which strips out the volatile food and energy, remained unchanged in June, which came in better than the consensus estimate of a rise of 0.2%.
On a year-over-year basis, CPI fell to 2.6% in June, following a reading of 2.9% in May. Economists had expected core CPI to stay at 2.9%.
Oil prices, which surged after the U.S.-Iran conflict started in late February, eased substantially in June, following a temporary truce between the two warring nations. The energy index fell 5.7% in June, the biggest drop since April 2020.
Other components also fell substantially. Services costs, a key gauge for the Fed to assess future inflation trends, eased in June. Services, excluding energy costs, came in flat. Transportation services costs declined 0.3%, while apparel prices, which are directly linked to oil prices and tariffs, declined 0.6%.
The decline in inflation brings much relief to the Federal Reserve. Policymakers remained divided over whether the central bank should go ahead with a rate cut in their June policy meeting. Markets have also been bracing for a 25-basis-point rate cut by the Fed by the end of this year.
The Federal Reserve will now get more time to decide on its rate cut plans and will watch how inflation stays over the coming months. Lower interest rates will allow consumers to spend more freely and boost the economy.
5 Consumer Discretionary Stocks With UpsideAmerican Outdoor BrandsAmerican Outdoor Brands, Inc. is a provider of outdoor products and accessories, including hunting, fishing, camping, shooting and personal security and defense products, for rugged outdoor enthusiasts. AOUT produces products under the brands Caldwell, Crimson Trace, Wheeler, Tipton, Frankford Arsenal, Lockdown, BOG, Hooyman, Smith & Wesson Accessories, M&P Accessories, Thompson/Center Arms Accessories, Performance Center Accessories, Schrade, Old Timer, Uncle Henry, Imperial, BUBBA, UST, LaserLyte and MEAT!.
American Outdoor Brands’ expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 29.4% over the past 60 days. AOUT currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Walt Disney CompanyThe Walt Disney Company has assets that span movies, television shows and theme parks. Revenues were $91.4 billion in fiscal 2024. DIS’ fourth-quarter fiscal 2024 results reflect growth in Disney+ subscribers and Media and Entertainment Distribution businesses. Domestic theme park and resort businesses gained due to guest spending growth attributable to increases in per capita guest spending at theme parks and cruise lines.
The Walt Disney Company’s expected earnings growth rate for the current year is 15.7%. The Zacks Consensus Estimate for current-year earnings improved 0.9% over the last 60 days. DIS presently has a Zacks Rank #2.
MasterCraft Boat HoldingsMasterCraft Boat Holdings, Inc. designs, manufactures and markets recreational powerboats through its subsidiaries. MCFT’s operating segment consists of MasterCraft and NauticStar.
MasterCraft Boat Holdings’s expected earnings growth rate for the current year is 81.5%. The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the past 60 days. MCFT presently carries a Zacks Rank #2.
Steven MaddenSteven Madden, Ltd. designs, sources, markets and sells fashion-forward branded and private-label footwear, accessories, handbags and apparel for women, men and children across the world. SHOO offers products under its owned brands, including Steve Madden, Kurt Geiger London, Dolce Vita, Betsey Johnson, Carvela, Blondo and ATM. It also licenses footwear, handbags and other accessories for the Anne Klein brand.
Steven Madden’s expected earnings growth rate for the current year is 22.9%. The Zacks Consensus Estimate for current-year earnings has improved 1.5% over the past 60 days. SHOO presently carries a Zacks Rank #1.
Lionsgate StudiosLionsgate Studios Corp. is a content company. LION brings together diversified motion picture and television production and distribution businesses.
Lionsgate Studios’ expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 69.2% over the past 60 days. LION presently carries a Zacks Rank #1.
Kettnich brings investor relations leadership from Mattel and The Walt Disney Company to guide Liftoff's public company narrative following its recent IPO July 14, 2026 16:30 ET | Source: Liftoff Mobile
REDWOOD CITY, Calif., July 14, 2026 (GLOBE NEWSWIRE) -- Liftoff Mobile, Inc. (“Liftoff”) (Nasdaq: LFTO), a global leader in performance marketing and monetization solutions for the app economy, today announced the appointment of Jenn Kettnich as Vice President of Investor Relations. Jenn will lead investor relations, overseeing the company's communications with the investment community following the company’s recent IPO.
“Jenn brings a rare combination of experience from two of the most closely watched consumer brands in the world,” said Tarek Kutrieh, President and Chief Financial Officer at Liftoff. “Her track record building trust with analysts and institutional investors will be invaluable as we deepen our relationships with the investment community and sharpen how we tell Liftoff's story in this next chapter as a public company.”
“I'm excited to join Liftoff at such a pivotal moment in its journey,” said Kettnich. “Liftoff plays a critical role powering the mobile app economy, and I'm looking forward to helping tell that story and building strong, lasting relationships with our analysts and investors.”
Jenn brings more than 15 years of experience in investor relations and finance. She joins Liftoff from Mattel, where she served as Vice President and Head of Investor Relations, leading the company's engagement with analysts and institutional investors. Prior to Mattel, she spent more than ten years at The Walt Disney Company, holding a senior role in Investor Relations, in addition to roles in Corporate Finance and Treasury.
Earlier in her career, she worked at Brandes Investment Partners, a leading investment advisory firm. Jenn holds an MBA in Finance and Strategic Management from The Wharton School and a BS in Business Administration from The University of North Carolina at Chapel Hill.
About Liftoff
Liftoff (Nasdaq: LFTO) is a leading growth and monetization engine built for the mobile app economy. Its AI-powered platform, Cortex, unifies marketing, creative, and monetization to deliver measurable performance at scale across the app lifecycle. Liftoff enables advertisers to unlock profitable user growth while helping app publishers maximize revenue with advanced ad monetization technology. Founded in 2012 and headquartered in Redwood City, California, Liftoff supports a diverse, global customer base across gaming, consumer, and emerging app categories.
BURBANK, Calif.--(BUSINESS WIRE)--The Walt Disney Company (NYSE: DIS) will host a live webcast to discuss fiscal third quarter 2026 financial results beginning at 8:30 a.m. ET / 5:30 a.m. PT on Wednesday, August 5, 2026. Disney will release results before the opening of regular trading on August 5, 2026 and post earnings materials at www.disney.com/investors. To access the webcast, please visit www.disney.com/investors. The webcast will be archived. Materials and webcast may include forward-loo.
The Zacks Media Conglomerates industry is flourishing, driven by the consumer shift toward over-the-top (OTT) content. Major players like Disney, Sphere Entertainment Co., Lionsgate Studios Corp. and Reservoir Media are aggressively investing in developing original music, shows and fresh content to captivate and retain Gen Z and millennial subscribers.
Moreover, the industry's prospects are bolstered by the availability of cost-effective alternative packages, such as skinny bundles, designed to entice consumers with lower prices compared to traditional offerings. Conversely, the industry grapples with waning broadcast television ratings and diminishing demand for home entertainment sales of theatrical content. Furthermore, advertisers' tepid spending amid rampant inflation and elevated interest rates poses a formidable concern for industry players.
Industry DescriptionThe Zacks Media Conglomerates industry encompasses companies engaged in creating and distributing various content forms, from entertainment to educational materials. These firms also offer travel and consumer products. The industry is adapting to the shift toward OTT content, both subscription-based and ad-supported. Advertising remains a key revenue source, while the metaverse presents new opportunities.
Subscription price increases, driven by growing subscriber numbers, offer potential revenue growth. However, the industry faces challenges that include declining broadcast TV ratings, reduced demand for home entertainment versions of theatrical releases, and increasing cord-cutting trends. Despite these obstacles, media conglomerates continue to evolve, leveraging new technologies and consumer preferences to maintain their market position.
3 Trends Shaping the Future of the Media IndustryOriginal Content Driving Growth: Media companies' capacity to generate advertising revenues beyond traditional TV platforms, such as websites and other digitally consumed channels, unlocks increased opportunities for targeted advertising. The growing consumer preference for subscription services over linear pay-TV and rental or outright purchases has compelled industry players to adapt their business models. Media companies are innovating with original content to attract and retain subscribers.
High-Speed Internet Demand Acting as a Key Catalyst: The burgeoning demand for high-speed Internet, including broadband, has benefited the media industry participants. Improving Internet speed has fueled the demand for high-quality videos and the trend of binge-watching. Furthermore, a strengthening broadband ecosystem in international markets, coupled with the proliferation of smart TVs, is expected to drive growth.
Cord-Cutting and Matured PayTV Industry Hurting Prospects: The media television industry is undergoing a rapid evolution of distribution platforms, embracing new players and advanced technologies. The declining profitability of residential video services due to rising programming costs and retransmission fees has made survival challenging for traditional companies. Additionally, the heightened demand for on-demand content has led to the mushrooming of streaming service providers, making it increasingly difficult for traditional media television companies to maintain their viewer base.
Zacks Industry Rank Indicates Bright ProspectsThe Zacks Media Conglomerates industry is housed within the broader Zacks Consumer Discretionary sector. It carries a Zacks Industry Rank #74, which places it in the top 30% of more than 245 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates continued outperformance in the near term. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s position in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group’s earnings growth potential.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Underperforms the Sector, S&P 500The Zacks Media Conglomerates industry has underperformed the broader Zacks Consumer Discretionary sector and the S&P 500 composite over the past year.
The industry has declined 23.3% in the above-mentioned period compared with a 15.5% drop in the broader sector. The S&P 500 has risen 24.2% during the same time frame.
Industry's Current ValuationOn the basis of the trailing 12-month P/S, a commonly used multiple for valuing media companies, we see that the industry is currently trading at 1.24X compared with the S&P 500’s 6.13X and the sector’s 1.56X.
Over the past five years, the industry has traded as high as 3.45X and as low as 1.15X, with a median of 1.5X.
4 Media Stocks to BuyLionsgate Studios is well-positioned heading into fiscal 2027, with momentum building across both segments. Three tentpole motion pictures — Michael, The Hunger Games: Sunrise on the Reaping, and Resurrection of the Christ — anchor a franchise-heavy theatrical slate poised to generate substantial box office and ancillary revenues. The Television Production segment is set to nearly double scripted episodic deliveries after renewing 12 of 13 current series.
The 20,000-plus title library sustains more than $1 billion in the trailing 12-month revenues, while a $1.3 billion contractual backlog — with 90% converting in 24 months — provides near-term visibility. Management has guided for significant adjusted OIBDA and free cash flow growth in fiscal 2027. This Zacks Rank #1 (Strong Buy) company's July-September 2026 corporate fact sheet signals continued confidence in this trajectory. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for the company’s fiscal 2027 earnings has moved north by 69.2% to 44 cents per share over the past 60 days. LION shares have returned 50% in the past six-month period.
The Walt Disney Company offers a favorable near-term setup, underpinned by management guidance and content-driven catalysts. For fiscal 2026, Disney targets approximately 12% adjusted EPS growth excluding the 53rd week, rising to 16% when included, alongside at least $8 billion in share repurchases. Entertainment SVOD margins are on track for 10%, with double-digit segment OI growth skewed to the second half.
Experiences target high-single-digit OI growth with Walt Disney World bookings up 5%. Fiscal 2027 guidance adds another double-digit EPS target. In July 2026, Toy Story 5 claimed the biggest global opening of 2026 and the second-biggest domestic animated debut ever. The June 2026 Disney Celebrates America initiative integrates parks, streaming and broadcast, widening near-term revenue and earnings visibility for this Zacks Rank #2 (Buy) stock.
The Zacks Consensus Estimate for the company’s fiscal 2026 earnings has moved north by 0.9% to $6.86 per share over the past 60 days. DIS shares have lost 15.8% in the past six-month period.
Sphere Entertainment is building momentum across multiple growth pillars. The Wizard of Oz at Sphere crossed $400 million in ticket sales with more than three million tickets sold since its August 2025 debut, confirming sustained audience demand. Sphere Studios' June 2026 announcement of The Rocky Horror Picture Show, slated for 2027, deepens the original content pipeline.
A five-year F1 Las Vegas Grand Prix partnership extension through 2030, announced in July 2026, ensures multi-year revenue visibility through Exosphere activations. Metallica's 24-concert residency beginning in October 2026 and the Backstreet Boys' 56-night run further densify the event calendar. With Sphere Abu Dhabi confirmed at Yas Island and National Harbor in development, the global rollout adds a structural growth layer underpinning investor sentiment.
The Zacks Consensus Estimate for this Zacks Rank #2 company’s 2026 bottom line is pegged at a loss of $2.52 per share, steady over the past 60 days. SPHR shares have risen 50.8% in the past six-month period.
Reservoir Media's fiscal 2027 guidance of $186-$191 million in revenues and $75-$79 million in adjusted EBITDA signals continued momentum, underpinned by a diversified and expanding catalog. The company's fiscal 2026 operating cash flow of $50.1 million, up $4.9 million year over year, and total available liquidity of $117.1 million provide meaningful flexibility for further acquisitions.
Recent strategic moves reinforce the growth trajectory: in June 2026, Reservoir launched a joint venture with Latin music publisher TU Publishing, extending its presence in a high-growth market segment. That same month, the company signed Jady frontman Jarrett Doherty through a newly established joint venture with Tinman. In July 2026, a publishing deal with Grammy-winning hip-hop icon T.I. — spanning back catalog and future works — further diversifies the company's portfolio and expands its commercial reach.
The Zacks Consensus Estimate for this Zacks Rank #2 company’s fiscal 2027 earnings has moved north by 18.2% to 13 cents per share over the past 60 days. RSVR shares have returned 36.2% in the past six-month period.
Free: Instant Access to Zacks' Market-Crushing StrategiesSince 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Akcie společnosti Walt Disney čelí dlouhodobě výraznému útlumu. Zatímco širší index S&P 500 posílil za posledních pět let o vyšší desítky procent, tak akcie zábavního konglomerátu ztratily za stejné období přibližně polovinu své hodnoty. Podle Wells Fargo však existuje potenciální krok, který by mohl náladu investorů zásadně změnit: oddělit, či dokonce zcela opustit vlastní streamovací byznys a místo toho se soustředit na tvorbu a licencování obsahu.
Analytik Wells Fargo Steven Cahall odhaduje, že větší zaměření na duševní vlastnictví a segment zážitků, kam spadají například zábavní parky a další spotřebitelské aktivity, by mohly zvýšit hodnotu akcií Disneyho až o 40 procent. Podle něj se totiž streamovací strategie, ačkoliv je mezi diváky populární (zejména ve srovnání s tradičními televizními a kinosálními produkcemi) nepromítla do odpovídajících výnosů pro akcionáře.
Cahall je toho názoru, že Disney není připraven konkurovat velkým hráčům s vysokým objemem produkce jako jsou Netflix nebo YouTube a "zůstává otázkou, zda je jejich tempo vydávání obsahu dostatečné“ k udržení předplatitelů a k dosažení atraktivních dlouhodobých marží.
Ačkoliv banka snížila cílovou cenu akcie na 125 dolarů z dřívějších 146 dolarů, tak titul nadále doporučuje k nákupu. Aktuálně se akcie obchodují kolem 95 dolarů za kus.
Analytik vidí namísto provozování vlastní streamovací služby Disney+ větší potenciál v širším licencování rozsáhlého portfolia značek a titulů, které zahrnují klasické disneyovské animované filmy, produkci od Pixaru či populární franšízy Marvel a Star Wars. Podle něj by v prostředí sílící konkurence mezi streamovacími platformami mohly být podobné obsahové knihovny stále cennější.
O licenční práva na atraktivní obsah by pak podle Wells Fargo mohli usilovat provozovatelé největších streamovacích služeb Apple, Amazon, Netflix, YouTube nebo Paramount Skydance. Namísto distribuce prostřednictvím vlastní platformy by tak Disney mohl z licencí generovat stabilnější a ziskovější příjmy.
Pokud by se domov Mickeyho Mouse „zaměřoval čistě na obsah versus distribuci“, mohly by roční příjmy z licencování překročit 15 miliard dolarů, odhaduje Wells Fargo. To by znamenalo výrazný růst oproti období před rokem 2019, kdy společnost zahájila výraznější orientaci na vlastní streamovací služby.
„Nemyslíme si, že by tržby z kin, divize zážitků (zábavní parky, plavby) nebo síla značky utrpěly, kdyby knihovna byla na konkurenčním globálním streamovacím kanálu,“ dodal na závěr Cahall.
Analysis by You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
The live-action remake of "Moana" didn't draw as many fans from the couch as expected. Kevin Mazur/Getty Images for Disney "Moana" bellyflopped in its box-office debut, and the miss should provide Disney film executives with some hard-earned lessons.
Disney's new live-action remake about the uber-popular Polynesian princess failed to bring audiences aboard, with a $43 million domestic opening that was only slightly above the disastrous start for the "Snow White" remake last year.
"'Moana's' performance this weekend certainly has everyone questioning the animation-to-live-action strategy often employed by Disney," said Paul Dergarabedian, the head of marketplace trends at media research firm Rentrak.
The Mouse House has used sequels and remakes as an easy, low-risk way to generate tons of cash, though a flop for one of its most popular movies means this strategy may be losing luster with fans.
"Disney invented this live-action phenomenon based on their animated films, and they've had remarkable success with them," said box-office analyst David Gross in a Sunday report. "But this opening isn't close to Disney's past remakes."
Unlike the ill-fated "Snow White" adaptation, this "Moana" movie had no notable controversies, and it didn't make polarizing creative choices like last May's successful "Lilo & Stitch" remake (which brought in over $182 million in the US in its debut).
Here are the three key reasons "Moana" sank in its box-office opening weekend, according to analysts.
1. It's all too familiarThe new "Moana" is "an almost shot-for-shot (and line-for-line, in some cases) remake of a five-star masterpiece," Business Insider's Gabbi Shaw wrote in a review of the live-action remake.
By mimicking the original "Moana," Disney avoided angering audiences who might not have wanted to see major changes to the hit. But by declining to reimagine "Moana," the live-action remake may not have excited fans either.
"The central conundrum with all of these remakes," Shaw wrote in her review, is that Disney fans or parents with Moana-crazed kids could have simply put on the "superior animated film" instead of bringing the whole family to a theater.
Though controversy-free, the new "Moana" movie was something that "nobody was talking about, for better or worse," said box-office analyst Scott Mendelson.
2. Too much 'Moana'Disney may have given audiences another "Moana" movie too soon.
The original animated film came out 10 years ago, and Disney struck gold with a billion-dollar "Moana 2" sequel in 2024.
Although the "Moana" movies are beloved, as they consistently rank among the most-watched films on streaming, kids may already be getting their fix of the princess from the comfort of their couch.
"This story wasn't ready to come back, and audiences are not rushing to see it," Gross said.
Analyst Shawn Robbins, the director of movie analytics at Fandango, said the timing of this "Moana" film missed the sweet spot.
"This live-action take arrived at least half a decade too early if the goal was for the box office to benefit from nostalgia and a generational hand-me-down to kids who didn't see the original film in theaters or weren't born yet," Robbins said.
3. It faced stiff competition, including friendly fireAnother factor in the "Moana" remake's slow start was that there are plenty of family-friendly films in theaters right now.
"The marketplace is a bit oversaturated with PG-rated family fare," Dergarabedian said.
Disney decided to release the new "Moana" three weeks after its own smash-hit "Toy Story 5" and a week after "Minions & Monsters" from Universal, though that film has so far slightly underwhelmed.
Those films and the World Cup may have kept audiences elsewhere, Robbins remarked.
However, seeing movies isn't always a zero-sum game. Mendelson said that family-friendly hits can spur rival movies, since kids see trailers in theaters and get excited.
"If people had wanted to see 'Moana,' they would have seen 'Moana,'" Mendelson said.
Read next
James Faris You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
The Zacks Media Conglomerates industry is flourishing, driven by the consumer shift toward over-the-top (OTT) content. Major players like Disney (DIS - Free Report) , Sphere Entertainment Co. (SPHR - Free Report) , Lionsgate Studios Corp. (LION - Free Report) and Reservoir Media (RSVR - Free Report) are aggressively investing in developing original music, shows and fresh content to captivate and retain Gen Z and millennial subscribers. Moreover, the industry's prospects are bolstered by the availability of cost-effective alternative packages, such as skinny bundles, designed to entice consumers with lower prices compared to traditional offerings. Conversely, the industry grapples with waning broadcast television ratings and diminishing demand for home entertainment sales of theatrical content. Furthermore, advertisers' tepid spending amid rampant inflation and elevated interest rates poses a formidable concern for industry players.
Industry Description The Zacks Media Conglomerates industry encompasses companies engaged in creating and distributing various content forms, from entertainment to educational materials. These firms also offer travel and consumer products. The industry is adapting to the shift toward OTT content, both subscription-based and ad-supported. Advertising remains a key revenue source, while the metaverse presents new opportunities. Subscription price increases, driven by growing subscriber numbers, offer potential revenue growth. However, the industry faces challenges that include declining broadcast TV ratings, reduced demand for home entertainment versions of theatrical releases, and increasing cord-cutting trends. Despite these obstacles, media conglomerates continue to evolve, leveraging new technologies and consumer preferences to maintain their market position.
3 Trends Shaping the Future of the Media Industry Original Content Driving Growth: Media companies' capacity to generate advertising revenues beyond traditional TV platforms, such as websites and other digitally consumed channels, unlocks increased opportunities for targeted advertising. The growing consumer preference for subscription services over linear pay-TV and rental or outright purchases has compelled industry players to adapt their business models. Media companies are innovating with original content to attract and retain subscribers.
High-Speed Internet Demand Acting as a Key Catalyst: The burgeoning demand for high-speed Internet, including broadband, has benefited the media industry participants. Improving Internet speed has fueled the demand for high-quality videos and the trend of binge-watching. Furthermore, a strengthening broadband ecosystem in international markets, coupled with the proliferation of smart TVs, is expected to drive growth.
Cord-Cutting and Matured PayTV Industry Hurting Prospects: The media television industry is undergoing a rapid evolution of distribution platforms, embracing new players and advanced technologies. The declining profitability of residential video services due to rising programming costs and retransmission fees has made survival challenging for traditional companies. Additionally, the heightened demand for on-demand content has led to the mushrooming of streaming service providers, making it increasingly difficult for traditional media television companies to maintain their viewer base.
Zacks Industry Rank Indicates Bright Prospects The Zacks Media Conglomerates industry is housed within the broader Zacks Consumer Discretionary sector. It carries a Zacks Industry Rank #74, which places it in the top 30% of more than 245 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates continued outperformance in the near term. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s position in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group’s earnings growth potential.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Underperforms the Sector, S&P 500 The Zacks Media Conglomerates industry has underperformed the broader Zacks Consumer Discretionary sector and the S&P 500 composite over the past year.
The industry has declined 23.3% in the abovementioned period compared with a 15.5% drop in the broader sector. The S&P 500 has risen 24.2% during the same time frame.
One-Year Price Performance
Industry's Current Valuation On the basis of the trailing 12-month P/S, a commonly used multiple for valuing media companies, we see that the industry is currently trading at 1.24X compared with the S&P 500’s 6.13X and the sector’s 1.56X.
Over the past five years, the industry has traded as high as 3.45X and as low as 1.15X, with a median of 1.5X, as the charts below show.
Trailing 12-Month Price-to-Sales (P/S) Ratio
4 Media Stocks to Buy Lionsgate Studios is well-positioned heading into fiscal 2027, with momentum building across both segments. Three tentpole motion pictures — Michael, The Hunger Games: Sunrise on the Reaping, and Resurrection of the Christ — anchor a franchise-heavy theatrical slate poised to generate substantial box office and ancillary revenues. The Television Production segment is set to nearly double scripted episodic deliveries after renewing 12 of 13 current series. The 20,000-plus title library sustains more than $1 billion in the trailing 12-month revenues, while a $1.3 billion contractual backlog — with 90% converting in 24 months — provides near-term visibility. Management has guided for significant adjusted OIBDA and free cash flow growth in fiscal 2027. This Zacks Rank #1 (Strong Buy) company's July-September 2026 corporate fact sheet signals continued confidence in this trajectory. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for the company’s fiscal 2027 earnings has moved north by 69.2% to 44 cents per share over the past 60 days. LION shares have returned 50% in the past six-month period.
Price and Consensus: LION
The Walt Disney Company offers a favorable near-term setup, underpinned by management guidance and content-driven catalysts. For fiscal 2026, Disney targets approximately 12% adjusted EPS growth excluding the 53rd week, rising to 16% when included, alongside at least $8 billion in share repurchases. Entertainment SVOD margins are on track for 10%, with double-digit segment OI growth skewed to the second half. Experiences target high-single-digit OI growth with Walt Disney World bookings up 5%. Fiscal 2027 guidance adds another double-digit EPS target. In July 2026, Toy Story 5 claimed the biggest global opening of 2026 and the second-biggest domestic animated debut ever. The June 2026 Disney Celebrates America initiative integrates parks, streaming and broadcast, widening near-term revenue and earnings visibility for this Zacks Rank #2 (Buy) stock.
The Zacks Consensus Estimate for the company’s fiscal 2026 earnings has moved north by 0.9% to $6.86 per share over the past 60 days. DIS shares have lost 15.8% in the past six-month period.
Price and Consensus: DIS
Sphere Entertainment is building momentum across multiple growth pillars. The Wizard of Oz at Sphere crossed $400 million in ticket sales with more than three million tickets sold since its August 2025 debut, confirming sustained audience demand. Sphere Studios' June 2026 announcement of The Rocky Horror Picture Show, slated for 2027, deepens the original content pipeline. A five-year F1 Las Vegas Grand Prix partnership extension through 2030, announced in July 2026, ensures multi-year revenue visibility through Exosphere activations. Metallica's 24-concert residency beginning in October 2026 and the Backstreet Boys' 56-night run further densify the event calendar. With Sphere Abu Dhabi confirmed at Yas Island and National Harbor in development, the global rollout adds a structural growth layer underpinning investor sentiment.
The Zacks Consensus Estimate for this Zacks Rank #2 company’s 2026 bottom line is pegged at a loss of $2.52 per share, steady over the past 60 days. SPHR shares have risen 50.8% in the past six-month period.
Price and Consensus: SPHR
Reservoir Media's fiscal 2027 guidance of $186-$191 million in revenues and $75-$79 million in adjusted EBITDA signals continued momentum, underpinned by a diversified and expanding catalog. The company's fiscal 2026 operating cash flow of $50.1 million, up $4.9 million year over year, and total available liquidity of $117.1 million provide meaningful flexibility for further acquisitions. Recent strategic moves reinforce the growth trajectory: in June 2026, Reservoir launched a joint venture with Latin music publisher TU Publishing, extending its presence in a high-growth market segment. That same month, the company signed Jady frontman Jarrett Doherty through a newly established joint venture with Tinman. In July 2026, a publishing deal with Grammy-winning hip-hop icon T.I. — spanning back catalog and future works — further diversifies the company's portfolio and expands its commercial reach.
The Zacks Consensus Estimate for this Zacks Rank #2 company’s fiscal 2027 earnings has moved north by 18.2% to 13 cents per share over the past 60 days. RSVR shares have returned 36.2% in the past six-month period.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Disney is famous for innovation, but the new 'Moana' remake has generated criticism for a lack of originality. (Photo by RONDA CHURCHILL/AFP via Getty Images)
AFP via Getty Images
Few genres of film have been as much of a gamble for Disney as the live-action remakes of its classic cartoons. Last year alone, Lilo & Stitch grossed $1 billion and became almost as beloved as the animated original while Snow White lost an estimated $170 million and cast a dark spell on the studio due to a slew of negative coverage. The latest addition to Disney’s stable is coming for Snow White’s crown as the criticism of it is so harsh that it raises the question of whether it would have been better to make the movie with Artificial Intelligence (AI).
The movie in question is Moana, starring newcomer Catherine Laga’aia as the eponymous Polynesian teenager who joins demigod Maui, played by Dwayne ‘The Rock’ Johnson, on a seafaring adventure to restore prosperity to her people. Johnson voiced the character in the 2016 computer animated original but that’s far from the only similarity between the two films.
Although the movie debuts today it has already been panned by critics for its lack of originality. “Much of the film is shot-for-shot, line of dialogue-by-line of dialogue a veritable clone,” wrote Deadline. For the same reason, Digital Spy’s review described it as “the most pointless Disney live-action remake yet” and The Wrap even highlighted this in its headline saying “It’s the Same Film, Disney Just Wants You to Pay for It Again”.
This cynicism was a common thread in the reviews with entertainment journalists noting that the remake was released soon after the original in order to squeeze yet more money out of the movie which had already spawned a successful sequel in 2024. “Any live-action remake from Disney’s canon does beggar the question of ‘why,’” wrote Deadline adding that “‘because it brings in money,’ is an answer as obvious as it is depressing.”
Perhaps the greatest irony is that Disney may be on track to lose money on Moana rather than make a profit on it.
Live-action adaptations were once easy box office hits but as they have become more common, studios have had to walk an increasingly fine line to stand a chance of success. On the one hand, the more they stray from the source material, the more they risk alienating fans of the originals. On the other, the closer they stick to the source material, the greater the risk that they will be accused of adding nothing new.
This is a post-pandemic phenomena as audiences are now used to streaming movies without paying for each film. It has made consumers much more picky about which movies to pay to watch at the theater. Although Disney’s live-action adaptations are aimed at children, parents of course are the ones who are buying the tickets so if they don’t like the look of a film, they won’t pay for a ticket, especially in this tough economic climate. It is a particular problem for Disney as its cute and cuddly cartoon characters generally don’t translate well into a live action setting.
The Little Mermaid was widely criticized for the eerie appearance of the creatures which inhabit its undersea world. “There’s something about these depictions that triggers an uneasy response,” wrote Vox. “Maybe it’s the prolonged, lingering shots on their ‘smiling’ faces or that their tiny mouths are contorted in unnatural ways. It’s as though there’s almost something sinister hiding underneath the computerized animal skin – and that’s even before they start singing and dancing.”
Likewise, Johnson’s appearance in Moana has attracted widespread online criticism and ridicule with the largest wave of mockery centered on Maui’s long, curly hair. Observers have complained that the wig looks unnatural and cheap, magnified by the fact that despite Johnson’s muscular frame, he wears a plastic-looking body suit in the movie to try and match Maui’s oversized proportions. It doesn’t appear to be going down well.
A Wash Out At The Box Office?Early estimates suggested that Moana would have a healthy $80 million to $105 million domestic opening but those forecasts have sunk in the wake of the excoriating assessment from critics who have given the film an average rating of just 38% on review aggregator Rotten Tomatoes.
According to Variety, tracking services now forecast that the movie will actually debut to between $60 million and $65 million giving it ticket sales that are barely above the original, which opened to $56 million. Moreover, it is only a fraction of Moana 2’s domestic haul, which was a massive $139.7 million over its first three days.
However, Variety’s report warns that some exhibitors believe Moana could generate as little as $40 million domestically on opening which would yield a worldwide gross of just $115 million as $75 million at most is expected from overseas markets. Studios retain around half of the box office takings so this would give Disney just $58 million from the movie’s opening when takings are usually around their peak.
Variety described that outcome as “catastrophic” given that Moana carries an estimated $250 million budget without including Disney’s hefty global marketing spend. It’s a salutary reminder that box office isn’t the be-all-and-end-all for investors. Last month Disney boasted that it had become the first Hollywood studio in 2026 to surpass $3 billion at the worldwide box office but that seems hollow if it ends up making a loss on a high-profile movie like Moana.
The higher the budget, the more moviegoers are needed for the picture to break even. Moana will need to make waves to attract them.
The evidence for this is in the graph below which is based on information from internet search giant Google. Its Google Trends service analyzes the popularity of top queries though the results don’t reveal the number of searches for a specific term. Instead, each point on the graph is relative to the others on a scale of zero to 100. A score of 50 means there were half as many searches for the term on that date than there were when it hit 100, which represents peak popularity. In contrast, a score of zero relates to the lowest number of search enquiries during the given time.
Google search traffic for 'Moana' over time.
Google Trends
Google processes more than five trillion inquiries annually giving it a 90% share of the market so the results are as comprehensive as can be. Crucially, Google Trends captures as many of them as possible as it is not case sensitive and shows worldwide search inquiries.
It is possible to narrow the search down to this year’s Moana movie but in order to get the clearest indication of the popularity of the franchise over time, the most logical term to use is simply ‘Moana’. The results show that despite the release of the live-action adaptation, there have been far fewer searches for Moana during July than in December 2016 and December 2024 soon after the first and second movies debuted. The former has a Google Trends score of 90 and the latter hit 100 whereas it currently stands at just 48.
Granted, it is only early in the month but the movie is released today so you would expect the searches to be surging. It still has time to turn the tide but it remains to be seen whether it will do it.
The Quarter Of A Billion Dollar QuestionThere could be good reason why audiences aren’t searching for Moana a great deal now: there is no call for the film. It’s not long since the animated original debuted and its live-action counterpart does nothing new. So what is the point in spending a quarter of a billion dollars on making it, especially when the end result has been repeatedly compared to an AI production?
The Daily Telegraph joked that it felt like someone just typed the animated scenes into an AI video generator while Deadline wrote that it had “animation that is barely distinguishable from AI.” Mashable added that “it evoked in me a similar reaction to AI slop, where I cringe at the unnerving blend of the familiar and the not-quite-right.”
All jokes aside, Disney could do a lot worse than use AI to make live action adaptations which don’t change the source material at all.
In short, Generative AI can be used to create content, such as text, images, audio or video, based on patterns it learns from massive amounts of existing data. It can produce photorealistic videos as their components are derived from existing footage and the program can also predict the next element in a sequence, like a word, a pixel or a sound.
With billions of online videos to draw from, Generative AI programs can create scenes showing anything in a matter of seconds. They aren’t rendering each frame in 3D in a sequence as traditional animators and visual effects artists do. Instead, the AI program forecasts what the frame will look like and all it requires is the user to enter a text prompt which describes what they are looking for. The more detailed and precise the prompt, the closer the result will be to the request.
It has led to a torrent of so-called AI slop – bizarre videos showing everything from Elvis Presley in Star Wars to Stephen Hawking winning WWE wrestling matches. Many of the clips are indistinguishable from reality even though they are entirely artificial. This is why it has cast a dark spell on the movie industry and its influence is only growing.
The Way Of The FutureLast year London-based production house Particle 6 unveiled a photorealistic AI actress called Tilly Norwood and just a few days ago announced the first film that the creation will appear in – a dramedy called Misaligned. Uniqueness isn’t the only reason for this sudden interest. All it takes is the push of a button to give the character a different hair color, skin color, eyes or accent. There’s no need for any makeup or training giving it tremendous versatility at a low cost.
There’s no doubt that it’s eerie but it seems to be the way of the future given the vast sums that are being invested in AI. For obvious reasons, many actors are up in arms with Mary Poppins star Emily Blunt saying “good Lord, we’re screwed” when she was shown a news report about Norwood. “That is really, really scary. Come on, agencies, don’t do that. Please stop. Please stop taking away our human connection.”
In contrast, a number of directors have voiced support for AI as they can see benefits. “I can’t see a reason why you wouldn’t become interested in this stuff as a filmmaker. It’s so clearly a tool that might be up there with the camera. It’s going to be be better than CGI [Computer Generated Imagery],” said Jurassic World: Rebirth director Gareth Edwards recently. Peter Jackson added “I don’t dislike it at all. I mean, to me, it’s just a special effect.”
Oscar-winning director Peter Jackson has come out in support of using AI effects in film-making. (Photo by Amy Sussman/Getty Images)
Getty Images
Some actors have expressed a sense of resignation towards AI. “AI is here. So to fight it is to fight a battle that we will lose,” said Demi Moore. “I do feel that there’s a place for it,” added Sandra Bullock. “It’s here. We have to observe it. We have to understand it. We have to lean into it. We have to use it in a really constructive and creative way, make it our friend.”
If actors and studios don’t do that, fans may do it anyway. As Matthew McConaughey recently explained, AI enables fans to digitally insert movie stars into personal events from the other side of the world without even asking.
In an attempt to get an AI platform onside, Disney announced a tie-up with OpenAI’s Sora video generation tool last year and although the partnership bit the dust when the platform closed earlier this year, the Mouse reportedly still wants to enter into a similar deal. Other studios have already signed AI deals of a different kind.
Michael Caine’s voice has been recreated using AI to narrate a new audiobook of The Odyssey to coincide with the release of the movie this month. Likewise, Netflix has recreated the voice of late legendary actor Gene Wilder for a Willy Wonka competition series. Appropriate permission was obtained in advance in both cases as it was for production of the movie As Deep as the Grave which features an AI performance from the late Val Kilmer. Film makers used footage, photos and voice recordings to help craft his performance.
Artificial Intelligence. Actual SavingsTo give an indication of the effect that AI can have on the bottom line, consider that it took 800,000 machine hours for Disney’s Pixar division to create 1995’s Toy Story as it had 114,240 frames of animation. However, an AI video generator could create a computer animated movie with a similar length and visual standard in around 400 minutes on a high-end cloud server cluster. If the project was split across separate high-end GPU nodes for each minute of the movie, the entire film could be rendered in under ten minutes. However, that’s not the end of the story.
If you just hit ‘generate’ and walked away, the resulting film would face significant production issues. For example, one of the characters might start the movie dressed in a certain way but by the end it could have warped into a completely different appearance. Likewise, the layout of the rooms could change and because the AI would generate the video separately from the audio, the lips would need to be manually matched, frame by frame, to the pre-recorded voice tracks.
‘Pre-training’ the AI program can fix a number of these issues but in turn, this requires doing some of the work that the program is designed to avoid. For example, if a 3D wireframe animation skeleton with exact physics, depth maps and camera movements is fed into a pre-trained AI, the program can simply render the textures, lighting and photorealistic skin on top making the end result much more stable. However, this requires the wireframe skeletons, depth maps and camera movements to be created and planned before the AI can get to work.
Of course, by its very nature, AI is learning every second as more of these videos are created so the processing time and caliber of the output are continually improving.
Nevertheless, even pre-training the AI takes considerably less time than rendering each frame by scratch, as was the case with Toy Story, or filming from scratch as happened with Moana. Feeding the entire Moana computer animated movie into a video generator would give the program more than enough information, especially if it was instructed to ensure that the the end result was no different to the original. It would cost a fraction of the amount that Disney spent on its live-action adaptation and could end up looking better. And if it didn’t, all Disney would need to do is type in some prompts and run the program again.
Sure, it would be lazy but so is copying the original shot for shot. Not even all the animals in the live action version look realistic with Moana’s chicken companion Heihei looking clearly computer generated. Ironically, inserting an obviously computer generated character into a photorealistic setting is exactly the kind of thing you find in AI slop videos.
Ultimately, the AI version would stand a greater chance of making a profit, due to its dramatically lower cost, so there would be less risk of wasting stockholders’ funds. Fans can create the movie themselves in AI, so by not doing this, Disney is opening the door being shown up by independent creators. In other words, it’s a lose-lose.
It’s no secret that there are some things computers can do better than humans and converting animated footage into live action is one of AI’s strengths. Of course, using AI isn’t the only solution. An alternative is walking that fine line and deviating from the source material in ways which justify the switch to live action filming. If it can’t be justified then it raises the question about whether the live action version should go ahead at all which is precisely what some critics say should have been asked about Moana.
The Walt Disney Company remains a Buy, supported by strong free cash flow, accelerating DTC profitability, and robust performance in sports and theme parks. DIS's Q2 results beat EPS and revenue estimates, with select streaming operating income up 88% and free cash flow at $4.94 billion, despite macro headwinds. Potential catalysts include a rumored Lionsgate acquisition, new CEO leadership, and AI-driven efficiencies across content and operations.
Image Credits:Rafael Henrique/SOPA Images/LightRocket / Getty Images Disney+ is considering making some of its streaming library available to watch for free, according to a report from Business Insider.
Disney’s chief product and technology officer Adam Smith discussed the possibility of offering free-tier content during a town hall on Thursday, the report says. It’s unknown which shows or movies would be included or when the streaming platform would consider launching the offering.
The rollout of free content would allow Disney+ to better compete with free services like YouTube and Tubi, which are capturing a growing share of consumers’ viewing time.
As streaming giants continue to raise prices, consumers have been turning to ad-supported services. According to data from Neilson, free streaming services represented 18.7% of U.S. television watch time in April 2026, rising from 16.8% in April 2025 and 12.7% in April 2024.
By offering select free content to consumers, Disney+ could better differentiate itself from its streaming peers like Netflix and Amazon Prime, especially as Apple TV+ and Paramount+ already allow non-subscribers to access a few free episodes.
Walt Disney (DIS - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
As such, the Zacks rating upgrade for Disney is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
For Disney, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for DisneyFor the fiscal year ending September 2026, this entertainment company is expected to earn $6.86 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for Disney. Over the past three months, the Zacks Consensus Estimate for the company has increased 3.8%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Disney to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
FuboTV Inc. (NYSE:FUBO) shares are trending Thursday after the company announced the appointment of Alisa Bowen as CEO, effective July 10, succeeding co-founder David Gandler.
FuboTV stock is moving in positive territory. Why are FUBO shares climbing? The Appointment“Alisa is a proven operator who brings nearly 30 years of product, digital and operational experience, including leadership across Disney+, Hulu and ESPN+,” said Andy Bird, Chairman of the Board. “She has an established track record of driving global subscriber growth and profitability.”
Gandler, who co-founded Fubo 11 years ago, resigned from the Board in accordance with the terms of his employment agreement. Subject to Board approval following the Annual Meeting of Stockholders on July 28, Bowen is also anticipated to be appointed to serve as a Board member.
“I am excited to lead Fubo in its next phase as we sharpen its strategy across sports, news and entertainment, accelerate growth and drive profitability,” said Bowen.
Fubo Shares Edge HigherFUBO Price Action: At the time of publication, Fubo shares are trading 1.96% higher at $9.70, according to data from Benzinga Pro.
Image via Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Market News and Data brought to you by Benzinga APIs
SummaryThe Walt Disney Company (DIS) trades at a rare discount, with a 14x earnings multiple and improving growth prospects.DIS earnings are projected to grow 10–15% annually, driven by streaming profitability, parks expansion, and robust buybacks.Management targets at least $8 billion in buybacks this year, equivalent to 5% of market cap, further boosting EPS.Leverage is down to just above 2x EBITDA, and a 1.6% dividend yield enhances DIS's total return outlook.Looking for a helping hand in the market? Members of Cash Flow Club get exclusive ideas and guidance to navigate any climate. Learn More » blanscape/iStock Editorial via Getty Images
Article Thesis The Walt Disney Company (DIS) has underperformed for quite some time, as investors were too bullish a couple of years ago, and since Disney's profit growth has been sluggish recently. But the share price
54.11K Followers
Analyst’s Disclosure: I/we have a beneficial long position in the shares of DIS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Toy figures of people are seen in front of the displayed Fubo TV logo, in this illustration taken January 20, 2022. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab
CompaniesJuly 9 (Reuters) - Streaming firm FuboTV (FUBO.N), opens new tab on Thursday named Disney executive Alisa Bowen as CEO effective July 10, while removing company veteran David Gandler as top boss.
Bowen, 53, joins FuboTV from Walt Disney (DIS.N), opens new tab, where she served as president of the media giant's streaming platform Disney+ since September 2022. Her career also includes leadership positions at News Corp Australia (NWSA.O), opens new tab, Dow Jones and Thomson Reuters (TRI.TO), opens new tab.
Jumpstart your morning with the latest legal news delivered straight to your inbox from The Daily Docket newsletter. Sign up here.
Gandler co-founded FuboTV in 2015 with Alberto Horihuela and Sung Ho Choi and has served as the company's CEO since its founding.
"Alisa is a proven operator who brings nearly 30 years of product, digital and operational experience, including leadership across Disney+, Hulu and ESPN+," said Andy Bird, chairman of the board.
Under her employment agreement, Bowen is expected to receive an annual base salary of $1.58 million and would be eligible for an annual performance bonus targeted at 120% of her base salary, according to a regulatory filing.
FuboTV said that Gandler, whose employment as CEO of the company ended on July 9, will receive severance benefits as per his employment agreement.
Gandler also resigned from his position on FuboTV's board and his nomination for re-election at the upcoming annual meeting has been withdrawn, the company said.
Reporting by Jaspreet Singh in Bengaluru; Editing by Jonathan Ananda
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Disney is exploring making some content on its namesake streamer free to watch. Stefano Facchin/Alessio Morgese/NurPhoto via Getty Images Disney is exploring making some of its streaming content available at an unbeatable price: free.
The Mouse House is discussing making some content accessible on Disney+ without a paywall, according to two people familiar with the matter.
Product and tech chief Adam Smith spoke about enabling free-tier content during a streaming town hall on Thursday afternoon, one staffer said. Smith didn't share a timeline for this initiative or a sense of the scope, this person added.
A person familiar with Disney's streaming strategy said these talks are part of an ongoing discussion about concepts to better serve fans.
Currently, the Disney+ and Hulu bundle costs $12.99 a month with ads or $19.99 without ads at full price.
Free streaming services like YouTube have become popular with audiences, generating significant growth in viewership share on US-based TVs compared to their paid peers, according to Nielsen data. The three largest free streamers accounted for 18.7% of watch time on US TVs in April, up from 16.8% a year earlier and 12.7% in April 2024.
As paid streamers have raised prices, consumers have increasingly sought out free content on YouTube and on ad-supported services like Tubi and The Roku Channel. (Tubi parent Fox is planning to double down on free streaming by buying Roku for $22 billion.)
A free tier could help Disney+ stand out among paid streamers. Apple TV and Paramount+ let users sample some full episodes, but paid streaming services generally don't have robust free offerings.
Disney and its Hollywood peers are also looking to boost engagement by embracing new formats like short-form video, podcasts, and micro dramas, which are bite-sized vertical shows.
In recent months, Disney has added vertical clips to its flagship streaming app, as has Paramount+. Disney CEO Josh D'Amaro has told staffers he's prioritizing "product and technology innovation" in streaming.
Netflix announced this week that it's adding 3- to 20-minute videos next month from publishers like BuzzFeed Studios, Condé Nast, Hearst Magazines, Penske Media, and People Inc. The streaming giant made a major move into video podcasts earlier this year and has also dabbled in vertical video.
Read next
James Faris You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
The Walt Disney Company (DIS 0.34%) entered a new chapter back in March when Josh D'Amaro succeeded Bob Iger as the chief executive officer of the iconic entertainment company. D'Amaro is a longtime Disney executive, and Wall Street is largely bullish on him and the company's outlook.
But the stock has struggled mightily. In 2026 alone, Disney is down more than 14% as of this writing. The entertainment giant is eager to make a comeback, and Disney will report earnings in early August. So should you buy the stock beforehand?
Today's Change
(
-0.34
%) $
-0.33
Current Price
$
96.37
There are reasons to be optimistic about the upcoming earnings report. D'Amaro comes from the theme park side and had quite a bit of success. In its latest quarter, the experiences division reported 7% year-over-year growth.
The company is also investing heavily in streaming and is approaching profitability there. Finally, the successful release of Toy Story 5 has given Disney a much-needed boost heading into the summer season. Overall, Disney expects adjusted earnings-per-share growth of 12% for fiscal 2026.
Image source: The Motley Fool.
The D'Amaro era isn't without its challenges. Disney is facing intense scrutiny and regulatory pressure from the FCC. Raymond James even cut Disney's price target recently due to increased competition from Comcast's Universal theme parks.
There's plenty of optimism surrounding Disney that simply hasn't translated into positive momentum for the stock. That could change when earnings are released in August. Disney is focused on sparking growth, and with the stock at a reasonable price right now, buying before the end of July could be advantageous for long-term investors.
Catie Hogan has positions in Walt Disney. The Motley Fool has positions in and recommends Walt Disney. The Motley Fool recommends Comcast. The Motley Fool has a disclosure policy.
While many were skeptical of the idea of a Moana live-action remake just two years after Moana 2 was released, it is still rather stunning that the film is reviewing this badly.
Moana, with dozens of reviews now in, has amassed a 37% Rotten Tomatoes score, the worst in Disney live-action adaptation history. That’s lower than at least 12 other movies, including the worst ones like Maleficent, Dumbo and Alice in Wonderland. Criticisms include its flat visuals, underwhelming performances and the fact that it simply did not need to exist at all as nearly a 1:1 remake of the original film.
Disney may need to take a beat to figure out the plan for continuing with this concept. Perhaps that not every movie they’ve ever made needs an adaptation like this, particularly not the ones that have released so recently. There is a big difference between say, Lilo and Stitch, which released 24 years ago, and Moana, featuring characters who were last seen on screen in 2024.
The biggest question, of course, is box office. While many of these movies have performed very well, some have bombed. Here are the last ten movies and their global totals:
Lilo and Stitch - $1.03 billionSnow White - $205 millionMufasa: The Lion King - $722 millionThe Little Mermaid - $569 millionCruella - $233 millionMulan - $70 millionMaleficent: Mistress of Evil - $491 millionThe Lion King - $1.6 billionAladdin - $1.05 billionDumbo - $353 millionYou may say that Moana, given the love for the original, is destined to be a smash despite these scores and a $250 million budget, but that’s become questionable. The most recent projections are that it may earn $60 to $65 million its opening weekend, or even as low as $40 million, a figure deemed “catastrophic” by some. In contrast, the Lilo and Stitch megahit opening weekend grossed $146 million. Doing half or even a third of that, if that extended to the global box office total, would be disastrous.
Disney is already pressing forward with new adaptations, the nearest being a live-action Tangled out in 2027. In the works are Lilo and Stitch 2, Hercules, Maleficent 3, The Aristocats and Cruella 2. There are some rather obvious big omissions right now. That would include The Princess and the Frog, Pocahontas, Tarzan, The Hunchback of Notre Dame, Big Hero 6, Encanto, Raya and the Last Dragon, Brave, Frozen 1 and 2 and smaller ones from there. Exactly zero of those sound exciting or necessary. There is absolutely no way that Disney will be able to resist Frozen, however, and I would predict $2 billion for that one.
MORE FOR YOU
We will see how Moana does, but if it’s an enormous bomb on that big a budget, Disney may want to slow down with these and really think hard about the plans to potentially do everything over time.
Follow me on Twitter, YouTube, and Instagram.
Pick up my sci-fi novels the Herokiller series and The Earthborn Trilogy.
Raven-Symone, Jessica, Adrienne Bailon, Kiely Williams and Sabrina Bryan (Photo by Johnny Nunez/WireImage)
WireImage
The Cheetah Girls are returning to Disney for a fourth film, eighteen years after the franchise’s last installment. The Cheetah Girls: Next Gen has been officially greenlit for Disney Channel and Disney+, with Raven-Symoné and Adrienne Bailon reprising their original roles alongside a new generation of stars led by Leah Sava Jeffries.
What The Cheetah Girls: Next Gen Is AboutThe film picks up when Galleria and Chanel — played by Raven-Symoné and Bailon respectively — travel to Africa with Galleria’s daughter Faith (Jeffries) and her three friends to volunteer at a wildlife sanctuary. The group must protect the sanctuary and their friendships while ultimately taking the stage as the new Cheetah Girls, per Disney’s official logline.
The Cheetah Girls: Next Gen Full CastLONDON, ENGLAND - DECEMBER 10: Leah Sava Jeffries attends the "Percy Jackson And The Olympians" London Screening at Picturehouse Central on December 10, 2025 in London, England. (Photo by Mike Marsland/WireImage)
Mike Marsland/WireImage
Leah Sava Jeffries, best known as Annabeth Chase in Disney+’s Percy Jackson and the Olympians, leads said next generation as Faith, Galleria’s daughter while Carmen Sanchez of Electric Bloom plays Dior, Chanel’s sister. Kaileen Chang plays Ruby. Sophie Lennon plays Brooklyn. South African actor Kamogelo Ramashala, discovered through a Disney global open casting call, plays Kendi. Sophia Bush joins in a supporting role as Jennifré.
From the original trilogy, Sabrina Bryan makes a special appearance as Dorinda. Lynn Whitfield and Lori Alter reprise their roles as Galleria’s mother Dorothea and Chanel’s mother Juanita respectively, but Kiely Williams, who played Aqua in the original trilogy, is not attached to the film at this time.
MORE FOR YOU
The film is directed and co-produced by Bille Woodruff, whose credits include Bridgerton. The screenplay is written by Kara Holden, Sarah Watson, and Deborah Swisher. Original executive producer Debra Martin Chase, who also produced The Princess Diaries, returns in the same role alongside Raven-Symoné, who is executive producing. Adrienne Bailon serves as a co-producer. Choreography is by Kyle Hanagami, who has previously worked with BLACKPINK, Jennifer Lopez, Britney Spears, Sabrina Carpenter and Justin Bieber.
The Cheetah Girls Franchise — A Brief HistoryThe original The Cheetah Girls premiered on Disney Channel in 2003, starring Raven-Symoné as Galleria, Adrienne Bailon as Chanel, Kiely Williams as Aqua, and Sabrina Bryan as Dorinda, four Manhattan teenagers who form a singing girl group. It was iconic in that it kickstarted the era of Disney channel musicals, and showed a group of girls genuinely diverse in body type, ethnicity and appearance at a time when it was uncommon.
The 2006 sequel, directed by High School Musical veteran Kenny Ortega, relocated the group to Barcelona. The Cheetah Girls: One World followed in 2008, sending the group to India for a Bollywood film albeit without Raven-Symoné, who had departed the franchise. All three films are currently streaming on Disney+.
Raven-Symoné announced the news on Instagram, writing, “It’s happening, and it’s CHEETAHLISHIOUS!”, posting a video of herself heading to set in front of an actual cheetah.
Disney Loves A SequelThe Cheetah Girls: Next Gen arrives as Disney doubles down on franchise IP. In 2025 alone, the studio released Avatar: Fire and Ash, Zootopia 2, Tron: Ares, Freakier Friday, and the live-action Lilo & Stitch — the latter crossing $1 billion at the global box office and immediately prompting a sequel greenlit for 2028, directed by the voice of Stitch.
In 2026, the pattern has continued with The Mandalorian and Grogu, Toy Story 5, and the live-action Moana all anchoring the theatrical slate. For Disney Channel and Disney+ specifically, the nostalgia playbook is running simultaneously: Camp Rock 3 is coming in August with the Jonas Brothers returning, while Princess Diaries 3 is in development with Anne Hathaway and director Adele Lim attache. At a 2023 event, when interviewer Andrew Ross Sorkin read out a 1966 letter by Walt Disney that said that he doesn’t believe in sequels because “there are many new worlds to conquer,” Disney CEO Bob Iger said, “I don’t want to apologize for making sequels”, which seems to remain the strategy here. Cheetah Girls: Next Gen seems a logical next step.
Investors with an interest in Media Conglomerates stocks have likely encountered both Walt Disney (DIS) and Pearson (PSO). But which of these two stocks offers value investors a better bang for their buck right now?
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Walt Disney (DIS - Free Report) .
Disney currently has an average brokerage recommendation (ABR) of 1.50, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 31 brokerage firms. An ABR of 1.50 approximates between Strong Buy and Buy.
Of the 31 recommendations that derive the current ABR, 22 are Strong Buy and four are Buy. Strong Buy and Buy respectively account for 71% and 12.9% of all recommendations.
Brokerage Recommendation Trends for DIS
Check price target & stock forecast for Disney here>>>
While the ABR calls for buying Disney, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Should You Invest in DIS?In terms of earnings estimate revisions for Disney, the Zacks Consensus Estimate for the current year has increased 0% over the past month to $6.86.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Disney. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Disney may serve as a useful guide for investors.
While The Odyssey dropped its social media embargo for early critic impressions nearly two weeks before release, Moana waited until the very last minute to do the same, stacking actual, full reviews the very same day. We are exactly one day before release, and those scored reviews are live. Going through many of them, it’s easy to see why Disney might have waited, given its horrific Rotten Tomatoes score.
At a 32 % Rotten Tomatoes critic review score, the live-action Moana remake is on the worst score ever out of of the growing amount of live-action animation adaptations that Disney has done, often pulling in huge profits, answering the “why” of why they’re bothering to remake so many classics. That is a big criticism about this version of Moana, that it is often a shot-by-shot, line-by-line remake of the original, so why should it have been made at all? “Money” is not usually a reason critics will consider when giving it a score.
I do find it interesting that the How to Train Your Dragon live-action film was similar, reusing some of the voice cast (like Dwayne Johnson here) in their former roles, the film again being an extremely close visual and script clone of the first movie. And that got a 78% critic score and a 97% audience score. I suppose it’s possible we see a high-end audience score like that for Moana too, but these reviews are so mixed that it would be a little surprising.
There’s also the “distance” factor here. The original Moana was only released 10 years ago, much more recently than some of the other films being remade in live action. Almost all of them, in fact. Then, Moana 2 was just released in November 2024, not even two years ago. It seems…ill-advised to reproduce these characters so quickly.
Moana
Rotten Tomatoes
MORE FOR YOU
Praises include the performance of new Moana, Catherine Laga’aia, though at the cost of outshining The Rock, where, despite the fact that he’s reprising his Maui role, it doesn’t work nearly as well onscreen with him and his silly wig. There are also often complaints about the visuals of the film, greenscreen flatness as opposed to the rich world of the animated original.
Here’s how Moana stacks up against the other Disney live-action remakes:
The Jungle Book (2016) – 94% critic score, 86% audience scoreCinderella (2015) – 83% critic score, 78% audience scoreCruella (2021) – 75% critic score, 97% audience scoreLilo and Stitch (2025) – 72% critic score, 91% audience scoreMulan (2020) – 72% critic score, 47% audience scoreBeauty and the Beast (2017) – 71% critic score, 80% audience scoreThe Little Mermaid (2023) – 67% critic score, 93% audience scoreAladdin (2019) – 57% critic score, 94% audience scoreThe Lion King (2019) – 52% critic score, 88% audience scoreAlice in Wonderland (2010) – 51% critic score, 55% audience scoreDumbo (2019) – 45% critic score, 48% audience scoreMaleficent (2019) – 39% critic score, 95% audience scoreMoana (2026) - 32% critic score, N/A audience scoreAnd here is a sampling of what critics are saying about the film:
Mashable – “It evoked in me a similar reaction to AI slop, where I cringe at the unnerving blend of the familiar and the not-quite-right.”Independent UK – “Dwayne Johnson’s terrible wig is just one low point of a film that has all the visual allure of a Febreze advert.”Consequence – “Maui’s nipples aside, Moana contains no nightmare fuel on the level of 2025’s Snow White — which ends up being high praise for adaptations like these.”I’m sorry, what about Maui’s nipples? In any case, they’re not going to be putting any of those on the poster, that’s for sure. But now we wait and see whether audiences care and just how many hundreds of millions this might make.
Follow me on Twitter, YouTube, and Instagram.
Pick up my sci-fi novels the Herokiller series and The Earthborn Trilogy.
Walt Disney (DIS - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this entertainment company have returned -1.9% over the past month versus the Zacks S&P 500 composite's +1.6% change. The Zacks Media Conglomerates industry, to which Disney belongs, has gained 0.3% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Disney is expected to post earnings of $1.88 per share, indicating a change of +16.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.6% over the last 30 days.
The consensus earnings estimate of $6.86 for the current fiscal year indicates a year-over-year change of +15.7%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $7.46 indicates a change of +8.8% from what Disney is expected to report a year ago. Over the past month, the estimate has changed +0.1%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Disney.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Disney, the consensus sales estimate of $25.41 billion for the current quarter points to a year-over-year change of +7.4%. The $101.72 billion and $106.38 billion estimates for the current and next fiscal years indicate changes of +7.7% and +4.6%, respectively.
Last Reported Results and Surprise HistoryDisney reported revenues of $25.17 billion in the last reported quarter, representing a year-over-year change of +6.5%. EPS of $1.57 for the same period compares with $1.45 a year ago.
Compared to the Zacks Consensus Estimate of $25.06 billion, the reported revenues represent a surprise of +0.41%. The EPS surprise was +5.37%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates just once over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Disney is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Disney. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
As the FIFA World Cup captures massive global audiences, media companies are preparing to pay billions for the rights to the next two men's tournaments.
Netflix, Disney and Alphabet's YouTube are all interested in challenging Fox for the U.S. broadcast rights to the 2030 and 2034 World Cup, according to people familiar with the matter.
Amazon, which currently owns UEFA Champions League rights in the U.K., and Apple, which owns global MLS rights, could also enter the mix, further fueling a potential bidding war for the rights.
watch now
Discussions between FIFA and potential media partners are expected to begin sometime in the next three months, according to people familiar with the matter, who asked not to be named because the talks are private.
FIFA has alerted media companies during preliminary talks, which began earlier this year, that English- and Spanish-language U.S. rights are likely to be sold together, rather than separately as they have been for previous World Cups, including 2026, according to the people.
Fox paid $485 million for the English-language rights for this year's tournament, hosted across North American cities, according to The Athletic. NBCUniversal's Telemundo paid $600 million for the Spanish-language rights, according to people familiar with the matter.
Executives at various media companies are budgeting between $1.5 billion and $2 billion for the U.S. rights to each tournament across languages, said the people. The last time FIFA negotiated a deal, with Fox and Telemundo, was in 2011. Four years later, FIFA extended that deal through 2026.
Get the CNBC Sport newsletter directly to your inboxThe CNBC Sport newsletter with Alex Sherman brings you the biggest news and exclusive interviews from the worlds of sports business and media, delivered weekly to your inbox.
Subscribe here to get access today.
FIFA won't sell global rights to the tournament, because different countries have regulations that mandate the World Cup must be sold over the air. But U.S. rights will be coveted, with major viewership and advertising opportunities.
Netflix, Disney and YouTube all view the World Cup as a potential major boost for their streaming services, according to the people familiar.
Disney could also air games on ESPN and ABC, which could be appealing to FIFA as the broadcast on Fox has seen strong ratings this year. FIFA has already shown interest in Netflix by awarding it the Women's World Cup in 2027 and 2031.
Spokespeople for FIFA, Netflix, YouTube and Disney declined to comment.
Selling one packageSelling the English- and Spanish-language rights as a single package could help FIFA garner a higher price, driving up bids from eager media partners looking for big ratings. The combined TV audiences for U.S. games in recent weeks have rivaled NFL playoff games.
Packaging the language rights could also help eliminate some tensions between rival media companies airing the same games.
Though Telemundo bought only the Spanish-language rights through 2026, it has claimed some unknown population of English speakers watching games in the U.S. via the Peacock streaming service, dampening Fox's World Cup reach.
Peacock charges just $10.99 per month, while Fox's streaming service, Fox One, costs $19.99 per month.
Telemundo also signed actor Owen Wilson, who isn't Latino or known for speaking Spanish, as a spokesperson for the Spanish-language coverage of the World Cup, blurring the lines for an American audience that speaks both English and Spanish.
If English- and Spanish-language games are sold together, NBCUniversal isn't likely to compete for the rights at a price nearing $2 billion, according to people familiar with the matter. That would remove Telemundo as a future partner.
Comcast announced last month it intends to spin out NBCUniversal, putting more investor focus on its future finances. NBCU already pays billions per year for the NFL's "Sunday Night Football" and NBA basketball. An NBC spokesperson declined to comment.
Leaving U.S. time zonesBoth the 2030 and 2034 World Cup are in less appealing time zones for U.S. TV viewership than this year's World Cup, which is taking place in the U.S., Mexico and Canada.
The 2030 World Cup will take place in Morocco, Portugal and Spain, where there is a five- or six-hour time difference with the U.S. Eastern time zone. The 2034 World Cup will be hosted by Saudi Arabia, where the time difference is even more dramatic.
Still, the outsized ratings for this year's World Cup will likely drive the price significantly higher.
Last week's U.S. victory over Bosnia and Herzegovina was the most-watched soccer telecast in English-language history, averaging more than 26 million viewers, according to Fox Sports.
Another 9.8 million viewers watched the game on either Telemundo or Peacock.
Monday night's game between the U.S. and Belgium will likely report even higher ratings. While Nielsen ratings haven't been released, the combined English and Spanish audiences for the U.S.-Belgium game averaged 47.9 million viewers, according to estimates from AdImpact.
Even non-U.S. games have drawn big audiences. More than 11 million viewers watched Portugal vs. Croatia on Fox, making it the most-watched non-finals game in U.S. history that didn't involve the U.S. team.
Shanghai Disneyland is Disney's highest earning international international resort. (Photo by VCG/VCG via Getty Images)
VCG via Getty Images
Disney has revealed that the total profit payout it receives from one of its theme parks outside the United States passed the $500 million mark last year making it the studio's highest-earning international outpost based on its share of the bottom line.
Surprisingly, the accolade doesn't go to Disneyland Paris even though it generates more revenue than any other Disney park outside the U.S. Instead, Shanghai Disneyland takes the crown of paying more of its profit to its parent than any other international Disney park with the total coming to an eye-watering $516.2 million since the doors to the resort swung open a decade ago.
The sprawling site on the eastern edge of Shanghai encompasses two hotels, a lake, an entertainment district and a fairytale-themed park which Disney's former chief executive Bob Iger famously described as being "authentically Disney, distinctly Chinese." There is good reason for this. Instead of creating a carbon-copy of Disney's American theme parks, its designers, who are known as Imagineers due to their imaginative use of engineering, tailored the Shanghai site to the local market. Everything was customized, from the park's layout and attraction lineup right down to its wide range of Chinese food.
It has cast a powerful spell as Shanghai Disney welcomed its 100 millionth guest in November last year and it isn't stopping there. At an event marking its tenth anniversary last month the resort announced that it is building a third on-site hotel, called the Disney Enchanted Star, with a fourth property also under development to cater for the surging demand.
According to the latest data from the Themed Entertainment Association (TEA), attendance at Shanghai Disneyland rose 5% to 14.7 million in 2024 driven by the opening of a new land themed to the Oscar-winning computer animated movie Zootopia. This made it the world's fifth most-visited theme park but the magic touch it has on Disney's bottom line has remained a closely-guarded secret. Until now.
MORE FOR YOU
Shanghai Disneyland has surged in popularity since the opening of its 'Zootopia' land. (Photo by Tang Yanjun/China News Service/VCG via Getty Images)
China News Service via Getty Images
Disney doesn't list the results of individual parks in its filings in the United States and China's companies register isn't public. However, recent filings for an obscurely-named company in the United Kingdom have lifted the curtain on the fortunes of Shanghai Disneyland.
Unlike Disney's theme parks in the United States, the resort is a public-private partnership between the media giant and China's state-owned Shanghai Shendi Group.
Disney only has a 43% stake in the company which owns the resort itself with the remainder in Shendi's hands. In contrast, Shendi is a minority shareholder in the resort's management company which is controlled by Disney through its 70% stake. In return, Disney receives royalties as well as a management fee based on the operating performance of the resort.
Disney’s shares in the resort and the management company are held by a wholly-owned subsidiary called WD Holdings (Shanghai) in Burbank, California. It pays dividends from its profits to the Disney companies which directly own it. Precisely 47% of WD Holdings is owned by The Walt Disney Company Limited in London which files publicly-available financial statements. Its latest set of filings were released recently and show that its dividends from WD Holdings began in 2019 and peaked at $57.7 million (£43.1 million) last year as I recently revealed in the Daily Mail.
This only represents 47% of the dividend so the full amount for 2025 is $122.7 million (£91.7 million) as the chart below shows. The dividend hit its lowest level in 2021 when it crashed by 60.3% to $25.9 million (£18.9 million) the midst of the pandemic. It has surged since then, thanks partly to the opening in December 2023 of the new Zootopia land. Is the first and only theme park area based on the film which was a huge hit in China.
Dividends paid by Shanghai Disneyland's holding company
MSM
A massive 23.1% of Zootopia's $1 billion box office was generated in China while a sequel last year did even better. It hauled in $630 million from China making it the highest-grossing Hollywood film in Chinese history. The theme park land capitalizes on this.
Home to a cutting-edge roving simulator ride, it is filled with brightly-colored buildings which have robotic replicas of the characters from the film peering out of their windows. Disney put more than 260 Zootopia products on sale in the park and created themed food for its restaurants. More than 532 tons of its pink paw-shaped pawpsicles alone have been sold. It has given a glow to Disney's bottom line.
'Zootopia' fans can try real-life pawpsicles in Shanghai Disneyland. (Photo by Tang Yanjun/China News Service/VCG via Getty Images)
China News Service via Getty Images
Three of its four international parks either don’t pay a dividend or only pay small sums. Disney doesn’t own its resort in Tokyo, which is run by specialist leisure operator Oriental Land Company (OLC). In return for licensing its intellectual property, OLC pays Disney royalties but not a a share of its profits. Disneyland Paris pays both but the only time it has paid out a share of its profits was in 1993 when its dividend yielded just $10.2 million (FF56.6 million) for Disney as I recently reported in The Guardian.
Likewise, Hong Kong has one of the smallest Disney parks and in 2024, following the opening of a land themed to the Oscar-winning film Frozen it made its highest-ever profit of $107.8 million (HK$838 million) which is lower than the dividend its counterpart in Shanghai paid out last year.
Shanghai's total profit payout of $516.2 million (£392.8 million) is the highest of any of Disney's international parks and doesn't even include any royalties as they are paid directly to one of its U.S. subsidiaries so they aren't shown on the U.K. filings. The total dividend for last year will actually be even higher than the amount reported in the financial statements as Disney shuffled its Shanghai shares into yet another subsidiary mid-way through 2025 and the filings for this entity are confidential.
Disney’s theme parks produced 57% of its $17.6 billion operating income and nearly 40% of its $94.4 billion revenue in 2025 which explains why the company is doubling down on them. It has earmarked $60 billion for investment in its theme park division by 2033 with a new Spider-Man themed roller coaster coming to Shanghai and a second park widely expected to get the green light as this report explained.
Nevertheless, in line with its ownership stake, it is understood that Disney covered around 43% of the estimated $5.5 billion construction cost of its resort in Shanghai so despite banking a string of blockbuster dividends from it, the studio is still waiting for its happy ending.
Walt Disney: Managing Volatile RevenueWalt Disney (DIS 0.20%) primarily generates revenue by developing and distributing entertainment content across media networks, streaming services, and global theme parks.
While announcing major capital expenditure plans for its theme parks and a recent workforce reduction, it reported a 9% net income margin for the quarter ended March 28, 2026.
Netflix (NFLX +0.36%) serves as a worldwide entertainment provider that offers subscribers a comprehensive library of television series, motion pictures, and mobile games.
While navigating regulatory challenges in Europe and expanding its advertising-supported subscription tier, it posted a 43% net income margin for the quarter ended March 31, 2026.
Why Revenue Matters for Retail InvestorsRevenue represents the total money brought in by sales before any expenses are deducted. Tracking this figure helps investors understand the total scale and top-line growth trajectory of a business.
Quarterly Revenue for Walt Disney and NetflixQuarter (Period End)Walt Disney RevenueNetflix RevenueQ2 2024$23.2 billion (period ended June 2024)$9.6 billion (period ended June 2024)Q3 2024$22.6 billion (period ended Sept. 2024)$9.8 billion (period ended Sept. 2024)Q4 2024$24.7 billion (period ended Dec. 2024)$10.2 billion (period ended Dec. 2024)Q1 2025$23.6 billion (period ended March 2025)$10.5 billion (period ended March 2025)Q2 2025$23.6 billion (period ended June 2025)$11.1 billion (period ended June 2025)Q3 2025$22.5 billion (period ended Sept. 2025)$11.5 billion (period ended Sept. 2025)Q4 2025$26.0 billion (period ended Dec. 2025)$12.1 billion (period ended Dec. 2025)Q1 2026$25.2 billion (period ended March 2026)$12.2 billion (period ended March 2026)Data source: Company filings. Data as of July 7, 2026.
Foolish TakeComparing revenue trends for Disney and Netflix demonstrates the difference in their business models. Disney’s total revenue is far greater, since its operations extend beyond film and television into theme parks, cruises, and merchandise sales. Netflix boasts a superior net income margin thanks to its singular focus on streaming services.
The strength of the Netflix model is seen in its consistent quarter-over-quarter revenue growth. However, its stock fell to a 52-week low of $70.86 on June 25 as investors became concerned about a slowdown in that growth. The company’s first-quarter sales of $12.2 billion represented a strong 16% year-over-year increase, but management forecasted 13.5% growth for Q2. Co-founder and Chairman of the Board Reed Hastings’ decision to retire from the company this year did not help matters, since he’s seen as a key leader in Netflix’s success.
Disney is navigating challenges of its own. A new CEO, Josh D’Amaro, took over on March 18. Results for its fiscal second quarter ended March 28 were overseen by D’Amaro’s predecessor, the legendary Bob Iger, so how the company will perform under new leadership is still an unknown. Disney’s fiscal Q2 sales of $25.2 billion represented 7% year-over-year growth. Investors should see if that trend continues in subsequent quarters.
In the latest trading session, Walt Disney (DIS - Free Report) closed at $97.41, marking a -2.1% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.72%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 1.12%.
The entertainment company's stock has dropped by 0.21% in the past month, falling short of the Consumer Discretionary sector's gain of 2.31% and outpacing the S&P 500's loss of 0.9%.
Investors will be eagerly watching for the performance of Walt Disney in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.88, signifying a 16.77% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $25.41 billion, indicating a 7.44% upward movement from the same quarter last year.
DIS's full-year Zacks Consensus Estimates are calling for earnings of $6.86 per share and revenue of $101.72 billion. These results would represent year-over-year changes of +15.68% and +7.73%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Walt Disney. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.06% rise in the Zacks Consensus EPS estimate. Right now, Walt Disney possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, Walt Disney is currently exchanging hands at a Forward P/E ratio of 14.52. This indicates a discount in contrast to its industry's Forward P/E of 17.12.
It's also important to note that DIS currently trades at a PEG ratio of 1.25. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Media Conglomerates industry was having an average PEG ratio of 0.65.
The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 77, putting it in the top 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
