Disney's Bright Future: Reasons to Invest
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: Fool
- Theme Park Upgrades: Disney is significantly upgrading its Florida theme park with over $1 billion in investments planned over the next four to five years, introducing new attractions to enhance visitor experiences, and despite challenges like rising gas prices and lagging consumer confidence, it has still achieved revenue and operating income growth in its experiences segment.
- Strong Box Office Performance: While Disney's stock has been volatile, it dominated the global box office in 2025, and plans to release major films like 'Avengers: Doomsday' and 'Toy Story 5' this year, leveraging its ecosystem to quickly roll out related merchandise and enhance profitability.
- New CEO Leadership: Josh D'Amaro took over as CEO at the March shareholder meeting, with his first full fiscal quarter results expected in August, and the market is eager to see how he can drive innovation and execution on the foundation laid by Bob Iger.
- Market Reaction Lagging: Despite an 18% stock price increase over the past three years, Disney's stock has fallen 41% over the last five years, indicating that the market has yet to fully reflect optimism about its future, and investors should pay attention to upcoming new projects and film releases.
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Analyst Views on DIS
Wall Street analysts forecast DIS stock price to rise
19 Analyst Rating
16 Buy
3 Hold
0 Sell
Strong Buy
Current: 103.730
Low
123.00
Averages
137.29
High
152.00
Current: 103.730
Low
123.00
Averages
137.29
High
152.00
About DIS
The Walt Disney Company is a diversified worldwide entertainment company. The Company's segments include Entertainment, Sports and Experiences. The Entertainment segment generally encompasses its non-sports focused global film and episodic content production and distribution activities. The lines of business within the Entertainment segment along with their business activities include Linear Networks, Direct-to-Consumer, and Content Sales/Licensing. The Sports segment encompasses its sports-focused global television and direct-to-consumer (DTC) video streaming content production and distribution activities. The lines of business within the Sports segment include ESPN and Star. The Experiences segment includes Parks and Experiences and Consumer Products. Parks and Experiences consists of Walt Disney World Resort in Florida, Disneyland Resort in California, Disney Cruise Line, and others. Consumer Products includes licensing of its trade names, characters, visual, literary and other IP.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Disney Set for Key Events Ahead
- Theme Park Additions: Disney has opened several new attractions ahead of the summer travel season, aiming to draw more visitors, even as its stock remained flat in May and is down 10% year-to-date.
- NBA Finals Broadcast: On June 3, the NBA Finals will air on Disney's ABC, with the New York Knicks returning to the championship for the first time since 1999, expected to generate strong ratings for Disney's network business.
- Toy Story 5 Release: Hitting theaters on June 19, Toy Story 5 follows the success of Toy Story 4, which grossed $434 million in the U.S. and over $1 billion globally, likely boosting Disney's merchandising and theme park experiences.
- Avatar Streaming Launch: On June 24, Avatar: Fire and Ash will begin streaming on Disney+, having grossed nearly $1.5 billion last year, although still below its predecessors, with future installments expected to draw audiences back to theaters.
See More
Gen Z Fuels Box Office Comeback
- Increased Viewing Frequency: Data from Fandango indicates that in 2025, Gen Z averaged seven movie viewings, matching millennials, while Generation X and baby boomers averaged only six, highlighting Gen Z's growing significance in box office dynamics.
- Expanding Market Share: Gen Z accounted for nearly 40% of moviegoers in North America, with AMC's marketing VP Carrie Trotter noting that not only is their number increasing, but their viewing frequency is also rising year over year, potentially making them the most crucial audience in the future.
- Popularity of Loyalty Programs: Participation in movie loyalty programs among Gen Z has tripled since the pandemic, with AMC's A-List attracting a significant number of young viewers, indicating their willingness to spend more for social activities and movie experiences.
- Social Experience Priority: Gen Z prioritizes social experiences when choosing films, with Trotter stating that they prefer to enjoy movies with friends and family, suggesting that this social aspect drives box office growth beyond mere film content.
See More
Is It Time to Reload Your Underinvested Portfolio?
- Shopify Stock Fluctuations: Shopify's stock has dropped 40% since last October, currently valued at $154 billion; despite pressures from slowing sales growth and rising interest rates, its Q1 revenue growth rate of 34% highlights its significance in the future of e-commerce.
- Nice's Customer Service Technology: Nice Ltd, with a market cap of $5.4 billion, derives only 14% of its cloud revenue from AI, yet its Q1 recurring revenue grew 66% year-over-year, showcasing its strong performance and growth potential in the customer service market.
- Viking Therapeutics' Drug Development: Viking Therapeutics is conducting phase 3 trials for its GLP-1 weight-loss drug VK2735, currently valued at $3.8 billion; analysts unanimously rate its stock as a strong buy with a target price of $95.40, reflecting confidence in its market potential.
- Investor Focus on Emerging Stocks: Despite overall market volatility, investor interest in Shopify, Nice, and Viking indicates optimism towards these growth stocks, particularly in the long-term growth prospects within the e-commerce and health sectors.
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Analysis of Shopify's Stock Price Decline
- Shopify's Stock Decline: Shopify's shares have fallen 40% since October, driven by slowing sales growth, rising interest rates, and potential threats from AI, although these concerns may be overstated.
- Nice Ltd's Customer Service Edge: Nice Ltd's platform facilitates over 20 billion interactions annually, and while AI accounts for only 14% of its cloud revenue, its annualized revenue has reached $345 million, indicating strong growth potential.
- Viking Therapeutics' Market Potential: Viking Therapeutics' VK2735 is in phase 3 trials and could disrupt the $200 billion obesity drug market, with analysts setting a target price of $95.40, representing a 200% upside from current levels.
- Cautious Investor Sentiment: Despite stocks remaining above late-March lows, many investors are on the sidelines due to concerns about a market pullback, particularly in the current economic climate, which challenges confidence in reinvesting.
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Disney Protests FCC's Early License Review
- License Renewal Protest: Disney filed for the renewal of eight broadcast licenses under protest, claiming the FCC's order is 'unlawful, arbitrary, and unconstitutional,' indicating the company's strong opposition to regulatory scrutiny.
- Accelerated Review Timeline: The FCC's decision to review Disney-owned ABC stations' licenses ahead of their scheduled renewals between 2028 and 2031 raises concerns about the company's diversity, equity, and inclusion efforts, potentially impacting its operational strategy moving forward.
- Political Motivation Concerns: The timing of the FCC's review coincides with renewed political backlash against ABC from President Trump over comments made by comedian Jimmy Kimmel, leading critics to suggest that the scrutiny is politically motivated, which could affect Disney's public image and market performance.
- First Amendment Controversy: Disney argues that the FCC's order lacks legitimate purpose and is inconsistent with the First Amendment, suggesting that the review poses a threat to its free speech rights and further exacerbates tensions with the regulatory body.
See More
Disney Protests FCC's Early License Renewal Review
- License Renewal Applications: Disney filed renewal applications for eight broadcast station licenses on Thursday, originally set to expire between 2028 and 2031, demonstrating the company's strong opposition to the FCC's early review process.
- Legal Protest Statement: In its filings, Disney stated that it was submitting the applications 'under protest,' accusing the FCC's order of being 'unlawful, arbitrary, and unconstitutional,' reflecting the company's deep dissatisfaction with the regulatory body's actions.
- Diversity Review Context: The FCC initiated the early license review following an investigation into Disney's and other media companies' diversity, equity, and inclusion (DEI) efforts, highlighting the regulatory body's focus on compliance within the industry.
- Political Motivation Concerns: Disney's protest also pointed out that the timing of the FCC's review coincided with political pressure from President Trump, raising questions about whether the scrutiny was politically motivated, which further exacerbates public concerns about the FCC's independence.
See More
Disney Set for Key Events Ahead
- Theme Park Additions: Disney has opened several new attractions ahead of the summer travel season, aiming to draw more visitors, even as its stock remained flat in May and is down 10% year-to-date.
- NBA Finals Broadcast: On June 3, the NBA Finals will air on Disney's ABC, with the New York Knicks returning to the championship for the first time since 1999, expected to generate strong ratings for Disney's network business.
- Toy Story 5 Release: Hitting theaters on June 19, Toy Story 5 follows the success of Toy Story 4, which grossed $434 million in the U.S. and over $1 billion globally, likely boosting Disney's merchandising and theme park experiences.
- Avatar Streaming Launch: On June 24, Avatar: Fire and Ash will begin streaming on Disney+, having grossed nearly $1.5 billion last year, although still below its predecessors, with future installments expected to draw audiences back to theaters.
See More
Gen Z Fuels Box Office Comeback
- Increased Viewing Frequency: Data from Fandango indicates that in 2025, Gen Z averaged seven movie viewings, matching millennials, while Generation X and baby boomers averaged only six, highlighting Gen Z's growing significance in box office dynamics.
- Expanding Market Share: Gen Z accounted for nearly 40% of moviegoers in North America, with AMC's marketing VP Carrie Trotter noting that not only is their number increasing, but their viewing frequency is also rising year over year, potentially making them the most crucial audience in the future.
- Popularity of Loyalty Programs: Participation in movie loyalty programs among Gen Z has tripled since the pandemic, with AMC's A-List attracting a significant number of young viewers, indicating their willingness to spend more for social activities and movie experiences.
- Social Experience Priority: Gen Z prioritizes social experiences when choosing films, with Trotter stating that they prefer to enjoy movies with friends and family, suggesting that this social aspect drives box office growth beyond mere film content.
See More
Is It Time to Reload Your Underinvested Portfolio?
- Shopify Stock Fluctuations: Shopify's stock has dropped 40% since last October, currently valued at $154 billion; despite pressures from slowing sales growth and rising interest rates, its Q1 revenue growth rate of 34% highlights its significance in the future of e-commerce.
- Nice's Customer Service Technology: Nice Ltd, with a market cap of $5.4 billion, derives only 14% of its cloud revenue from AI, yet its Q1 recurring revenue grew 66% year-over-year, showcasing its strong performance and growth potential in the customer service market.
- Viking Therapeutics' Drug Development: Viking Therapeutics is conducting phase 3 trials for its GLP-1 weight-loss drug VK2735, currently valued at $3.8 billion; analysts unanimously rate its stock as a strong buy with a target price of $95.40, reflecting confidence in its market potential.
- Investor Focus on Emerging Stocks: Despite overall market volatility, investor interest in Shopify, Nice, and Viking indicates optimism towards these growth stocks, particularly in the long-term growth prospects within the e-commerce and health sectors.
See More
Analysis of Shopify's Stock Price Decline
- Shopify's Stock Decline: Shopify's shares have fallen 40% since October, driven by slowing sales growth, rising interest rates, and potential threats from AI, although these concerns may be overstated.
- Nice Ltd's Customer Service Edge: Nice Ltd's platform facilitates over 20 billion interactions annually, and while AI accounts for only 14% of its cloud revenue, its annualized revenue has reached $345 million, indicating strong growth potential.
- Viking Therapeutics' Market Potential: Viking Therapeutics' VK2735 is in phase 3 trials and could disrupt the $200 billion obesity drug market, with analysts setting a target price of $95.40, representing a 200% upside from current levels.
- Cautious Investor Sentiment: Despite stocks remaining above late-March lows, many investors are on the sidelines due to concerns about a market pullback, particularly in the current economic climate, which challenges confidence in reinvesting.
See More
Disney Protests FCC's Early License Review
- License Renewal Protest: Disney filed for the renewal of eight broadcast licenses under protest, claiming the FCC's order is 'unlawful, arbitrary, and unconstitutional,' indicating the company's strong opposition to regulatory scrutiny.
- Accelerated Review Timeline: The FCC's decision to review Disney-owned ABC stations' licenses ahead of their scheduled renewals between 2028 and 2031 raises concerns about the company's diversity, equity, and inclusion efforts, potentially impacting its operational strategy moving forward.
- Political Motivation Concerns: The timing of the FCC's review coincides with renewed political backlash against ABC from President Trump over comments made by comedian Jimmy Kimmel, leading critics to suggest that the scrutiny is politically motivated, which could affect Disney's public image and market performance.
- First Amendment Controversy: Disney argues that the FCC's order lacks legitimate purpose and is inconsistent with the First Amendment, suggesting that the review poses a threat to its free speech rights and further exacerbates tensions with the regulatory body.
See More
Disney Protests FCC's Early License Renewal Review
- License Renewal Applications: Disney filed renewal applications for eight broadcast station licenses on Thursday, originally set to expire between 2028 and 2031, demonstrating the company's strong opposition to the FCC's early review process.
- Legal Protest Statement: In its filings, Disney stated that it was submitting the applications 'under protest,' accusing the FCC's order of being 'unlawful, arbitrary, and unconstitutional,' reflecting the company's deep dissatisfaction with the regulatory body's actions.
- Diversity Review Context: The FCC initiated the early license review following an investigation into Disney's and other media companies' diversity, equity, and inclusion (DEI) efforts, highlighting the regulatory body's focus on compliance within the industry.
- Political Motivation Concerns: Disney's protest also pointed out that the timing of the FCC's review coincided with political pressure from President Trump, raising questions about whether the scrutiny was politically motivated, which further exacerbates public concerns about the FCC's independence.
See More
