The Walt Disney Company (DIS) Fell as Investor Reactions to Mixed Performance Indicators in the Parks Segment

RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its “RiverPark Large Growth Fund” Q3 2025 investor letter. A copy of the letter can be downloaded here. U.S. equity markets recorded strong gains in the third quarter, with the S&P 500 Total Return Index rising 8.12% and the Russell 1000 Growth Index returning 10.51%. The fund also surged in the quarter and returned 4.73%. Market leadership was narrow in the quarter, with a few mega-cap tech and consumer companies thriving on strong AI innovation. Information Technology, Consumer Discretionary, and Communication Services led sector performance, while Energy and Utilities lagged. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, RiverPark Large Growth Fund highlighted stocks such as The Walt Disney Company (NYSE:DIS). The Walt Disney Company (NYSE:DIS) is an entertainment company that operates through the Entertainment, Sports, and Experiences segments.  The one-month return of The Walt Disney Company (NYSE:DIS) was -6.01%, and its shares lost 6.98% of their value over the last 52 weeks. On November 18, 2025, The Walt Disney Company (NYSE:DIS) stock closed at $106.28 per share, with a market capitalization of $191.084 billion.

RiverPark Large Growth Fund stated the following regarding The Walt Disney Company (NYSE:DIS) in its third quarter 2025 investor letter:

"The Walt Disney Company (NYSE:DIS): DIS was a top five detractor during the quarter despite solid 3Q25 results. Revenue of $23.65 billion modestly missed consensus, but segment operating income of $4.6 billion and EPS of $1.61 were ahead of forecasts as strength in Sports, Experiences, and Direct-to-Consumer (DTC) more than offset softness in Linear Networks and Content Sales & Licensing. Management raised full-year EPS guidance to $5.85 (from $5.75 previously), driven by an improved DTC EBIT outlook of $1.3 billion (vs. $1.0 billion prior) and stronger expected Experiences growth at 8% year-over-year (vs. the prior high-end of 6–8%). Still, the stock declined modestly as investors digested mixed key performance indicators in the Parks segment, with flat domestic attendance versus expectations for +3–4% growth.

We continue to view Disney as a high-quality EPS compounder with multiple levers for sustained growth. The company’s DTC segment delivered meaningful upside in EBIT, subscriber additions, and ARPU, underscoring operating leverage and the benefits of integrating Disney+ and Hulu into a unified platform to improve churn, engagement, and monetization. The ESPN DTC launch on August 21 ($29.99/month) alongside new content partnerships, including expanded NFL programming, WWE live events, and NFL Fantasy integration, further strengthens the Sports segment’s long-term earnings trajectory. Meanwhile, the Experiences business continues to perform well, with record per person spending, higher hotel occupancy, and strong cruise trends."

The Walt Disney Company (NYSE:DIS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 111 hedge fund portfolios held The Walt Disney Company (NYSE:DIS) at the end of the second quarter, which was 104 in the previous quarter. While we acknowledge the potential of The Walt Disney Company (NYSE:DIS) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered The Walt Disney Company (NYSE:DIS) and shared the list of stocks Jim Cramer discussed. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.