The past five years of investing in Disney (DIS) stock has been a roller coaster akin to the legendary Space Mountain. That is, imagine yourself rising to the top of the world, only to plummet at top speeds to uncertain depths — all in the dark!
The stock market, in general, is a bit like riding a roller coaster. It’s important to buckle in, mentally and psychologically, for a wild ride before making any investment. Historical analytics can prepare you for only so much, and you shouldn’t invest more than you can afford to lose. But is Disney stock a risky buy?
Smart investors approach any purchase with their eyes wide open, taking in all the data available, including past performance, market conditions and even company leadership.
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GOBankingRates asked three investors if they feel investing in Disney stock will add magic to your portfolio in 2025 or if you should run away like Cinderella leaving the party at midnight. Here’s what they said.
Disney has a long history on the stock market, dating back to 1957. Adjusting for splits and dividends, shares reached an all-time high of $201.91 in March 2021, just prior to spring break following the pandemic. The stock is now trading at just over half that price per share and even dipped under $100 in 2024.
After that bumpy ride, where is the stock headed this year?
Jason DeLorenzo, market strategist and founder of Volland, an options dealer positioning dashboard service, said that Disney is currently overpriced and, with that, could fall to the $80s this year.
“Based on the institutional option positioning shown in Volland … institutions believe DIS is overpriced,” he said. “There is a lot of positioning at the 100, 105 and 110 strikes, meaning those levels are seen by institutions to be topping areas.”
DeLorenzo pointed out that some Disney ideologies have conflicted with the current presidential administration, which could cause challenges for the media company. “With DIS holding opposing values of the incoming administration, I would not be surprised if policies are introduced that hurt DIS stock,” he said.
This could include legislation or regulations surrounding the company’s theme parks, foreign properties or its media.
“Additionally, Disney content has flooded the market but has slowed recently. Marvel and Star Wars franchises are getting tired, and sequels to recent DIS animated hits can only add so much content,” DeLorenzo said. “For flow and fundamental reasons, Disney [stock] should struggle in 2025.”
Paul Gabrail, founder and host of the YouTube channel Everything Money, agreed that Disney is currently struggling. But he doesn’t view the challenges as insurmountable.
“My entire thesis is based on the fact that Disney’s profit margin is significantly lower than their pre-COVID levels. Their current profit margin is in the low single digits; pre-COVID, they were north of 10%. Once they are able to get costs in check and drive more to the bottom line, the profit will drive the stock price higher,” he said.
Gabrail cited Disney’s streaming service, Disney+, as one saving grace, rather than a hindrance to growth, for the company. “Streaming is a highly competitive space; however, they have a lot of great assets that they own and have made exclusive to their streaming platform, which I think has benefited the company,” he said.
The parks should also continue to flourish in 2025. “Disney [parks have] record revenue now, and it is still growing!” Gabrail said, disclosing that he owns Disney stock.
Ketti Rose, CEO of Wealthy Femme, a financial literacy and investing company, likewise agreed that Disney will prevail as a long-term investment. “I do expect Disney stock to go higher in 2025,” she told GOBankingRates, citing its streaming services, theme parks and vast intellectual property holdings as drivers for its profitability and long-term growth.
However, headwinds may come from regulatory and macro risks, along with risks of a recession or continued inflation. “Disney’s theme park revenues, a long-standing pillar, are [especially] sensitive to global economic conditions,” Rose said. “Meanwhile, U.S. consumers struggling under a rising cost of living could lead them to tighten their wallets, complicating the company’s pricing power across all its offerings.”
However, Disney’s beloved characters and vast licensing agreements could add profit opportunities for the media giant in 2025. “The content production landscape will be dominated by Disney’s strength in monetizing its massive IP library via partnerships and licensing. New gaming, retail or experiences initiatives could open up other revenue streams,” she said.
Ultimately, this stock, according to Rose, could be a good buy for longer-term investors. “The stock remains attractive for longer-term investors, particularly at discounted valuations in periods of market volatility,” she said.
