Disney (DIS) Faces Setbacks in Epic Games and OpenAI Partnerships

The Walt Disney Company (NYSE:DIS) is one of the 10 Beaten Down Stocks Insiders Are Piling Into.

On March 25, 2026, Bloomberg reported that The Walt Disney Company (NYSE:DIS) had seen two technology bets face setbacks within a week of Josh D’Amaro becoming CEO. Epic Games announced layoffs of 1,000 employees following weaker engagement for new versions of “Fortnite,” after Disney invested $1.5B in the company two years ago. Separately, OpenAI said it was shutting down its AI video generator Sora and ending a partnership with Disney tied to a potential $1B investment.

On March 18, 2026, Guggenheim lowered its price target on The Walt Disney Company (NYSE:DIS) to $115 from $140 and maintained a Buy rating as it reassessed valuation and leadership transition dynamics following Josh D’Amaro’s appointment as CEO. Guggenheim noted the shares have underperformed the S&P 500 since Bob Iger’s return in 2022 and CFO Hugh Johnston’s appointment in 2023, while pointing to opportunities to rebuild investor confidence.

Disney (DIS) Faces Setbacks in Epic Games and OpenAI Partnerships

Earlier in March, Paul Roeder was named Senior Executive Vice President and Chief Communications Officer, reporting directly to Josh D’Amaro and leading global communications strategy, with D’Amaro describing Roeder as an “accomplished” executive with strong relationships across the company.

The Walt Disney Company (NYSE:DIS) operates an entertainment business across its Entertainment, Sports, and Experiences segments globally.

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