Explosive Streaming Growth at Netflix Competitor: Is This 48% Dip the Perfect Buying Opportunity?

Disney’s streaming segment, which includes Disney+, Hulu, and ESPN+, turned profitable with an operating profit of $1.3 billion in fiscal 2025. This marks a turnaround from a cumulative operating loss of $4.6 billion in fiscal years 2020 and 2021. The company’s strategy focused on leveraging its extensive intellectual property, which has significantly boosted subscriber numbers. Despite the success, Disney’s stock has declined nearly 48% since its peak in March 2021, primarily due to challenges in transitioning from a traditional cable model to a streaming-centric business. Currently, Disney’s stock is being offered at a forward price-to-earnings ratio of 16.2, below the S&P 500’s 22.2, indicating potential upside for investors as the company aims for double-digit adjusted earnings per share growth moving forward.