NEW YORK – Shares of The Walt Disney Company (DIS) rallied on Monday, closing with a significant gain of 2.39% as investor optimism builds around the entertainment giant’s multifaceted business segments. The stock finished the trading day at $119.35, up $2.79, signaling strong bullish sentiment ahead of the company’s highly anticipated quarterly earnings report.
The positive momentum for Disney began at the opening bell, with the stock starting the day at $117.72, well above the previous close of $116.56. Shares maintained their upward trajectory throughout the session, reaching a high of $119.52 before settling. The activity continued in after-hours trading, with the stock ticking up an additional 0.29% to $119.70.
This recent surge places the stock closer to its 52-week high of $124.69, a notable recovery from its low of $80.10 over the same period. The day’s performance was fueled by a flurry of positive analyst ratings and a growing belief in the company’s strategic direction, particularly in its streaming and parks divisions.[1][2] On Monday, Evercore ISI Group reiterated an “Outperform” rating on Disney and raised its price target to $140.[2] This follows similar upward revisions from other major firms, with the consensus among many analysts pointing to a “Strong Buy.”[3][4] The average price target of around $130 to $136 suggests a potential upside of over 9% from its current price.[3][5]
A key driver of this confidence is the remarkable turnaround of Disney’s direct-to-consumer (DTC) segment.[6] After years of heavy investment and losses, the streaming business—comprising Disney+, Hulu, and ESPN+—has achieved profitability.[6][7] In its last reported quarter, the segment posted a surprising operating income, a development that has Wall Street taking notice.[6][7] The company is now focusing on sustainable growth by hiking prices and cracking down on password sharing, strategies that have proven successful for competitors like Netflix.[8][9]
While the streaming wars remain intensely competitive, with formidable rivals in Netflix, Amazon Prime Video, and others, Disney’s unmatched portfolio of intellectual property is seen as a major long-term advantage.[10][11][12] The steady pipeline of content from Marvel, Star Wars, Pixar, and Disney’s legacy animation studios continues to fuel demand for its streaming services.[11][12] As of early 2025, Disney+ had approximately 124.6 million subscribers worldwide.[13]
The Parks, Experiences, and Products division also remains a cornerstone of Disney’s financial strength, consistently driving robust revenue.[8][14] While recent reports have indicated a slight moderation in attendance at domestic parks, guest spending remains strong, and international parks have shown impressive growth.[15][16] The company is making significant investments in this segment, including expanding its cruise line and developing a new theme park in Abu Dhabi, which are expected to be major future growth catalysts.[5][6] However, the division is not without its challenges, as it remains susceptible to economic downturns, and has faced headwinds from higher operational costs and the financial impact of recent hurricanes.[10][15] 
Investors are now keenly focused on the upcoming fiscal third-quarter results, expected to be released on Wednesday.[5] Analysts are projecting year-over-year growth in both revenue and profits, with many looking for continued improvement in streaming margins and resilient demand at the theme parks.[5] The company’s previous earnings announcement in May surpassed expectations, with reported earnings per share of $1.45 on revenue of $23.62 billion.[17]
The current P/E ratio of around 24.38 suggests that investors are willing to pay a premium for Disney’s earnings, banking on future growth. The company also offers a dividend yield of 0.84%, rewarding shareholders as it navigates its strategic transformation.[17]
Despite the overall positive outlook, the company faces persistent challenges. The decline of linear television continues to impact its traditional media networks, and the transition to a streaming-centric model will require careful management to maintain long-term profitability.[9][11] Furthermore, the broader economic climate and its effect on discretionary consumer spending remain a potential risk for its theme park and consumer products segments.[10]
As the company prepares to release its latest financial report, all eyes will be on whether the recent momentum in its streaming and parks divisions can be sustained. The guidance provided by management for the coming months will be critical in determining if this rally is just a momentary bounce or the start of a new chapter of growth for the House of Mouse.
