Disney's Profitable Streaming and Parks Performance Offset by Regulatory Risk

The Walt Disney Company (NYSE:DIS) has entered Q3 with a strong financial performance. The company's streaming service is profitable, its parks are generating solid cash flow, and it continues to buy back shares.

However, Disney faces regulatory risk as FCC Chair Brendan Carr launched an early review of ABC broadcast licenses owned by the company. This review may impact the company's TV assets ahead of scheduled 2028 renewals.

The company also reported softer attendance at its Orlando parks compared to Universal's Epic Universe. Analysts have cut price targets for Disney, with Jefferies reducing its target to $125 and Morgan Stanley to $123. Citi maintained a buy rating but reduced its target to $135.