Disney Stock Slumps 47% from Peak, But Streaming Growth Offers Hope

Walt Disney (DIS) shares have been struggling since their peak in March 2021, trading at a significant discount of 47% below its all-time high as of September 17. The media and entertainment giant's stock performance has been disappointing over the past five and a half years.

The decline can be attributed to the shift towards streaming video entertainment, pioneered by Alphabet's YouTube and Netflix. This transition has negatively impacted Disney's legacy operations in the cable-TV industry, which remains profitable but declining due to reduced subscribers.

However, Disney is not entirely behind in the streaming game. The company launched its flagship platform Disney+ in November 2019, alongside Hulu (excluding live TV), and now boasts a combined 191 million subscribers as of September 27, 2025. This segment has been reporting surging profits, with operating income increasing over 100% year-over-year in the latest fiscal quarter.

The experiences division, comprising theme parks, cruises, and consumer products, remains the crown jewel of Disney's empire, accounting for 39% of total revenue and 54% of company operating income. With a wide economic moat due to its unparalleled intellectual property, Disney has a strong presence in its markets.

According to sell-side analysts, Disney's earnings per share are forecast to increase at a compound annual rate of 11.8% between fiscal 2025 and fiscal 2028, making it a value stock with a forward price-to-earnings ratio of 14.5, representing a 28% discount to the S&P 500 index.