The Walt Disney Company (DIS) has been dethroned. According to MoffettNathanson, YouTube generated approximately $62 billion in total revenue in 2025, edging out the $60.1 billion from Disney’s entertainment and sports segments to become the world’s largest media company.
For investors, the question isn’t really about the crown—it’s about whether Disney stock deserves a place in their portfolios at current levels. On paper, however, Disney is hardly in crisis. Fiscal 2025 revenue reached $94.4 billion, with earnings per share jumping 152%. Yet the stock trades nearly 50% below its five-year high and has been flat for a decade.
The structural issue is clear: YouTube’s ad-plus-subscription model represents the present and future of media, while Disney still carries the drag of declining linear networks. Recent quarterly results illustrate the pressure—revenue grew 5%, but operating income fell 9%, and adjusted earnings dropped 7%.
Streaming turns profitable. The direct-to-consumer business posted $450 million in operating income last quarter, a 72% year-over-year surge. Disney+ has moved beyond the heavy-investment phase.
Experiences remain unmatched. Parks and resorts generated a record $10 billion in quarterly revenue and $3.3 billion in operating income—a moat no tech rival can replicate.
ESPN is fortified. A landmark deal giving the NFL a 10% stake in ESPN ensures the sports giant remains indispensable in an increasingly fragmented media landscape.
The competition has changed. Disney now fights Amazon, Netflix, and Alphabet—companies that can subsidize streaming losses with lucrative core businesses. Netflix alone grew Q4 revenue 17.6% and boasts over 325 million subscribers.
Debt is a drag. With roughly $41 billion in net debt, Disney paid $443 million in interest last quarter alone—capital that could otherwise fuel content or shareholder returns.
At 15 times earnings, Disney stock looks inexpensive. But in today’s environment, that valuation offers limited margin of safety. The brand, IP, and parks are world-class, but intense competition and a heavy debt load argue for patience. If an investor believes in Disney’s long-term assets, the stock belongs on a watchlist—not necessarily in a portfolio. A clearer entry point may emerge once the market more fully prices in the structural challenges ahead.
