Why Disney Stock Is Up This Year but Still Can’t Beat the S&P 500 — or Can It?

Core Viewpoint - The Walt Disney Company's stock performance has been disappointing, with only a 5% increase in 2025 compared to a 17% rise in the S&P 500, raising questions about its ability to rally effectively [2][4]. Group 1: Stock Performance - Disney shares have shown a sideways pattern over the past few years, with limited rallies, despite reaching their highest levels in three years during mid-summer 2025 [1]. - The stock's year-to-date performance in 2025 is significantly lagging behind the S&P 500, which indicates investor concerns about Disney's growth prospects [2]. Group 2: Company Strengths - Disney possesses strong brand recognition and a diverse portfolio, including theme parks, media properties like ESPN and Marvel Studios, and family-friendly cruise operations [3]. - Despite the stock's underperformance in 2025, Disney's one-year performance is on par with the S&P 500, suggesting that short-term statistics may not fully reflect the company's overall health [4]. Group 3: Challenges Facing Disney - The company faces headwinds, particularly in its traditional TV business, which has seen a 28% drop in revenue for linear networks due to declining viewership and advertising revenue [5]. - The market's current focus on technology and AI stocks has diverted investor attention away from Disney, contributing to its stock struggles [5].