The Walt Disney Company (DIS): A Bull Case Theory

We came across a bullish thesis on The Walt Disney Company on Stock Analysis Compilation’s Substack. In this article, we will summarize the bulls’ thesis on DIS. The Walt Disney Company’s share was trading at $121.95 as of July 24^th. DIS’s trailing and forward P/E were 24.89 and 19.05 respectively according to Yahoo Finance.

The Walt Disney Company (DIS), a diversified entertainment conglomerate with media networks, film studios, theme parks, cruise ships, and consumer products, presents a compelling investment opportunity following a recent pullback in its stock. The company’s near-term growth trajectory is underpinned by Disney+, where subscriber growth, higher average revenue per user (ARPU), and streaming margin expansion are expected to drive significant operating income gains.

Management’s emphasis on content quality and targeted releases has positioned Disney+ for stronger engagement and retention, while a disciplined approach to costs supports margin improvement. Beyond streaming, Disney’s established licensing engine continues to deliver, with successful film and franchise releases translating into robust merchandise sales and incremental licensing revenue.

These drivers collectively enhance operating leverage, setting the stage for improved company-wide margins and strengthened free cash flow generation. The recent market correction has created a favorable entry point, with the current valuation not fully reflecting Disney’s ability to monetize its extensive intellectual property portfolio across multiple verticals.

The combination of a growing subscriber base, higher ARPU, and operating efficiency improvements in streaming, along with expanding licensing revenues, is expected to fuel meaningful earnings growth. In our view, this convergence of catalysts, alongside Disney’s enduring brand equity and diversified business model, offers investors a well-timed opportunity to capture upside as the company accelerates margin expansion and cash flow generation, reinforcing its long-term value proposition.

Previously, we covered a bullish thesis on The Walt Disney Company by Magnus Ofstad in June 2025, which highlighted management turnaround, activist involvement, and streaming profitability as drivers of a genuine recovery. The company’s stock price has appreciated by approximately 3.56% since our coverage, as improved fundamentals lifted sentiment. Stock Analysis Compilation shares a similar view but emphasizes Disney+ subscriber growth, ARPU, and licensing-led operating leverage.

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Disclosure: None.