Here's Why The Walt Disney Company (DIS) Declined in Q3

Cullen Capital Management, LLC, operating under the name Schafer Cullen Capital Management, Inc. (SCCM), has released its “SCCM Value Equity Strategy” third-quarter investor letter. A copy of the letter can be downloaded here. The US equity market continued the rally in the third quarter, with the S&P 500 returning 8.1% and the Russell 1000 Value surging 5.3%. The value equity strategy returned 6.9% (gross of fees) and 6.8% (net of fees) in the quarter, while the Russell 1000 Value and S&P 500 returned 5.3% and 8.1%, respectively, during the same period. The strategy returned 13.0% (gross), YTD, compared to the Russell 1000 Value’s +11.7% return and the S&P 500’s +14.8% return. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, SCCM Value Equity Strategy 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 $189.74 billion.

SCCM Value Equity Strategy stated the following regarding The Walt Disney Company (NYSE:DIS) in its third quarter 2025 investor letter:

"Our stock selection within the Communication Services sector was the largest detractor from relative performance. The Walt Disney Company (NYSE:DIS) (-7.7%) reported third quarter results that modestly missed expectations in Entertainment and came in below forecasts for streaming growth. Direct-to-Consumer revenue increased 6% but was held back by softer advertising and limited subscriber gains in the U.S. Disney+ base. Management raised full-year EPS guidance to $5.85, signaling confidence in ongoing cost discipline and earnings recovery. Experiences continued to perform well, with domestic parks revenue up 10% and record attendance at Walt Disney World, underscoring the resilience of Disney’s brand strength and diversified portfolio."

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.