So here’s the thing about Disney (DIS) in 2025: while everyone else was making money, Mickey Mouse was basically treading water. The stock managed a whopping 0.4% gain this year. That’s not even enough to buy a churro at Disneyland.
Meanwhile, the S&P 500 cruised to a 15% gain, and even Netflix—despite face-planting 30% from its peak—still managed to beat Disney with a 5% return. Ouch. That’s like losing a race to someone running backwards.
What Went Wrong in the House of Mouse?
Disney’s problems read like a greatest hits album of modern media struggles. Their cable TV networks are bleeding viewers faster than a Marvel movie leaks spoilers. Cord-cutting isn’t just a trend anymore—it’s a full-blown exodus, and Disney’s linear TV revenue is feeling every subscriber who ditches cable for YouTube TV.
The streaming wars? Disney+ finally turned profitable (hooray!), but subscriber growth slowed to a crawl. Turns out people have limits on how many streaming services they’ll pay for, and Disney learned this the hard way. Price hikes don’t help when your audience is already juggling Netflix, Amazon Prime, and whatever new platform launched this week.
Even Disney’s theme parks—usually their money-printing machine—hit some turbulence. Domestic attendance softened because, surprise, people are feeling the pinch of $150 park tickets and $20 sandwiches. International parks did better, but apparently Americans decided maybe they don’t need to mortgage their house for a Disney vacation.
The 2026 Comeback Story?
Here’s where it gets interesting. Wall Street analysts are basically saying “hold my beer” and slapping Buy ratings on Disney with price targets around $132. That’s 18% upside from today’s $112 price tag.
The bull case is actually pretty solid. Disney+ is targeting 10% operating margins through the classic combo of higher prices and more ads (because nothing says magic like commercial breaks). The standalone ESPN streaming service could be huge—sports fans are notoriously willing to pay premium prices to watch their teams lose in real-time.
Disney’s also doubling down on cruise ships in 2026, which is smart because cruise passengers are literally trapped customers who can’t comparison shop while at sea. Plus, they’ve got Avatar: Fire and Ash, Toy Story 5, and a live-action Moana coming—because if there’s one thing Disney knows, it’s how to milk intellectual property until the cow comes home.
The Bottom Line
Disney’s 2025 was basically a year of paying dues. The streaming pivot is messy, cable TV is dying, and theme park pricing has reached “are you kidding me?” levels. But here’s the thing: Disney still owns some of the most valuable entertainment assets on the planet.
ESPN remains the sports content king, Disney+ has the content library that makes competitors weep, and those theme parks—despite the sticker shock—still create memories that last lifetimes (and credit card debt that lasts almost as long).
For patient investors who can stomach some volatility, Disney at current prices might be the rare chance to buy magic at a discount. Just don’t expect miracles overnight—even fairy godmothers need time to work.