Nancy Pelosi dumps $1M of Disney as stock sinks

Core Insights - Former House Speaker Nancy Pelosi has sold a significant portion of Disney stock, valued between $1 million and $5 million, which raises questions about the timing of this decision [1] - Disney currently has a market capitalization of $198 billion and is facing multiple near-term challenges [2] Financial Performance - Disney's traditional TV networks are experiencing significant audience declines, with the broadcast network ABC and pay-TV channels like FX losing viewers to streaming services [3][4] - The company's entertainment unit revenue fell by 6% in the most recent quarter to $10.21 billion, impacted by linear TV networks and theatrical releases [8] - Operating income from Disney's linear networks dropped by 21% to $391 million in the fourth quarter, with advertising revenue suffering a $40 million decline due to lower political advertising [8] Streaming Business - Despite challenges in traditional media, Disney's streaming business has become profitable, with operating income rising by 39% to $352 million in the fourth quarter, and full-year operating income reaching $1.3 billion, an increase of $1.2 billion from the previous year [4] - Disney+ added 3.8 million paid subscribers, bringing the total to 131.6 million, while Hulu has 64.1 million customers [5] Theme Parks and Experiences - Revenue from Disney's experiences division, which includes theme parks and cruises, grew by 6% to $8.77 billion, and operating income increased by 13% to $1.88 billion [9] - However, the company has faced attendance declines and weaker consumer spending at its domestic parks, although CFO Hugh Johnston noted a 3% increase in bookings and a 5% rise in spending per person in the most recent quarter [10] Stock Performance - Disney's stock has significantly underperformed compared to the broader market, falling from around $200 in early 2021 to approximately $110 as of late January 2026, marking a decline of roughly 45% [7] - The stock hit yearly lows around $80 in 2023 before experiencing a partial recovery [7]