From Nasdaq: 2025-04-21 02:34:00

Walt Disney stock has fallen over 23% this year due to recession fears from tariffs. Despite this, Disney’s valuation is attractive at 16x FY’25 earnings, with growth potential in its streaming business. However, weak financials and recession risks pose concerns.

Disney’s revenue growth has slowed to 4%, with a projected 3% increase this year. Valuation is low at 16x earnings, but profitability and debt levels are weak. Streaming services show promise with subscriber and ARPU growth, supported by a strong content library.

New tariffs increase recession risks for Disney, as most operations rely on discretionary spending. CEO Bob Iger warns of cost impacts and lack of skilled labor. Historically, Disney stock underperforms during downturns, making it a risky investment in uncertain market conditions.

Despite concerns, Disney stock offers long-term upside with growing streaming momentum and content pipeline. Patient investors may benefit, but risk is present. Diversifying with a portfolio like Trefis’s High Quality Portfolio may provide better returns with less risk compared to investing in a single stock.



Read more at Nasdaq: Why Is Disney Stock Trading So Cheap?