The Walt Disney Company (DIS): A Bull Case Theory

We came across a bullish thesis on The Walt Disney Company on Disruptive Analytics’ Substack by Magnus Ofstad. In this article, we will summarize the bull’s thesis on DIS. The Walt Disney Company's share was trading at $117.75 as of June 23^rd. DIS’s trailing and forward P/E were 24.03 and 18.66 respectively according to Yahoo Finance.

After years of disappointing earnings, a dividend suspension, and a 43% drop from its 2021 highs, Disney brought back Bob Iger to revive the struggling company. Activist investors, most notably Nelson Peltz’s Trian Capital, pushed for change in 2024, criticizing Disney’s delayed streaming strategy, overcommitment to declining linear TV, and weak board oversight.

Peltz emphasized the need to reinvigorate creative output to restore Disney’s brand strength and improve Disney+ performance. The Q1 2025 results may mark a turning point: Disney reported a 5% year-over-year revenue increase and a 44% jump in adjusted EPS, with its streaming segment—Disney+ and Hulu—finally reaching profitability. A strong box office showing, theme park expansion plans in Abu Dhabi, and solid growth in sports and experiences also fueled optimism.

CEO Bob Iger pointed to the results as evidence of revived creative momentum and progress from strategic efforts initiated over the past two years. Disney raised its full-year profit forecast on this momentum, and the market responded with enthusiasm—shares surged 12% in a single day and climbed 36.6% over the past month.

While skepticism lingers due to Disney’s history of false starts, the latest financial and operational performance suggests that a genuine turnaround could be underway. The company’s next steps—especially around creative leadership and succession planning—will be key to sustaining this trajectory and restoring long-term investor confidence.

Previously we covered a bullish thesis on The Walt Disney Company by Investing Intel in May 2025, which highlighted the positive momentum from streaming profitability, upgraded profit guidance, and global expansion via a new Abu Dhabi theme park. The company’s stock price has appreciated approximately 7.3% since our coverage. This is because the thesis played out with improved fundamentals and investor sentiment. The thesis still stands as Disney’s execution continues to reinforce long-term potential. Magnus Ofstad shares a similar view but emphasizes management turnaround and activist involvement as key drivers of the ongoing recovery.

The Walt Disney Company is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 104 hedge fund portfolios held DIS at the end of the first quarter which was 108 in the previous quarter. While we acknowledge the risk and potential of DIS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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