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With a storied history spanning more than 100 years and intellectual property that industry peers can only dream of having, Walt Disney has long been a leader in media and entertainment. However, it has not been a winning investment recently: the company’s share price is down 50% over the past five years and 16% in 2026 (as of April 7).
Disney’s experiences segment includes its theme parks and cruise ships. In fiscal 2025 (ended Sept. 27, 2025), the segment generated $36.2 billion in revenue and $10 billion in operating income, for an operating margin of 28%.
In September 2023, management outlined a plan to spend $60 billion over the next 10 years on capital expenditures to add new attractions at parks and expand the cruise fleet. The company also has 1,000 acres of land available for development at its existing parks.
Supporters of the stock argue that the segment’s pricing power, high barriers to entry, and durable growth—backed by Disney’s intellectual property—make it a particularly strong part of the business.
The entertainment segment’s streaming businesses, including Disney+ and Hulu (excluding Hulu Live TV), are another reason cited for buying the dip. After sizable losses in prior years, these platforms are now contributing to Disney’s bottom line.
During first-quarter 2026 (ended Dec. 27, 2025), Disney’s direct-to-consumer streaming services generated $450 million in operating income, up 72% year over year. Management also expects a 10% operating margin for the fiscal year, compared with an operating margin of about 5% reported in fiscal 2025.
Disney’s operational shift away from legacy cable networks and toward direct-to-consumer services has weighed on investor sentiment in recent years, contributing to pressure on the stock price. The article points to valuation as a potential offset.
Disney is trading at a forward price-to-earnings ratio of 14.4, which the article says is a 29% discount to the overall S&P 500 index. With the experiences and streaming businesses positioned as key drivers of the future, the article concludes that April could be an opportunity to buy the dip.

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