News about Walt Disney

The article argues Disney shares look undervalued, trading at a forward P/E of 13.8 versus 19.6 for the S&P 500, even though the stock is down 46% from its peak (as of Oct. 14) and 4% in 2026. The legacy cable networks continue to drag on results, with operating income down 65% from fiscal 2022 to fiscal 2025 as U.S. cable-TV households fall to a forecast 54 million in 2026 from 105 million in 2010. In contrast, the DTC entertainment business, including Disney+ and Hulu, has turned profitable, with Q3 operating income more than doubling to $712 million, while the experiences segment earned $3 billion, or 54% of total operating income, amid a 10-year, $60 billion capital expenditure cycle. The author sees a strong case for patient investors with a five-year horizon, while acknowledging risks such as costly sports rights, intense competition and the possibility that investors are chasing AI stocks.