Valued at a market cap of $205.7 billion, Burbank, California-based The Walt Disney Company (DIS) is a global entertainment powerhouse with operations spanning film, television, streaming, publishing, and theme parks. It produces and distributes content through well-known brands such as Disney, Pixar, Marvel, Lucasfilm, National Geographic, and ESPN.

Companies valued at $200 billion or more are generally considered “mega-cap” stocks, and Walt Disney Solutions fits this criterion perfectly. The company also operates popular direct-to-consumer streaming services, including Disney+ and Hulu, alongside its extensive theme parks and resort experiences worldwide.

However, the entertainment company has fallen 7.7% from its 52-week high of $123.74, recorded in March last year. Walt Disney shares have declined nearly 2% over the past three months, outperforming the broader Nasdaq Composite's ($NASX) 3.7% dip during the same period.

In the long term, DIS stock has gained 2.5% on a YTD basis, outpacing NASX's 2.9% decrease over the same period. However, Walt Disney has risen nearly 2% over the past 52 weeks, lagging behind NASX's 15.2% gain. 

Yet, DIS has been trading above its 50-day moving average since mid-September last year despite recent fluctuations.

Disney reported fiscal Q1 2025 results on Feb. 5 that beat expectations, with adjusted EPS of $1.76 and revenue of $24.7 billion. The Direct-to-Consumer segment turned profitable for the first time, with Hulu adding 1.6 million subscribers and ESPN’s advertising revenue boosting sports segment operating income to $247 million. Operating income grew 31% year-over-year to $5.1 billion, driven by streaming profitability and a rebound in content licensing, which surged from a loss to $312 million due to successful film releases.

However, the stock fell 2.4% on that day due to a 700,000 drop in Disney+ subscribers to 124.6 million and a flat theme park operating income at $3.1 billion, impacted by $120 million in hurricane-related losses. Investors also remained cautious about ongoing challenges in the traditional TV business.

In contrast, rival Netflix, Inc. (NFLX) has outperformed Walt Disney. Netflix shares have climbed 59.9% over the past 52 weeks and an 11.1% YTD rise.

Despite DIS' underperformance over the past year, analysts remain moderately optimistic about its prospects. Among the 30 analysts covering the stock, there is a consensus rating of “Moderate Buy,” and it is currently trading below the mean price target of $128.92.