How Zootopia 2’s Record-Breaking Opening Could Reignite Disney's Stock

TradingKey - Hollywood giant Disney (DIS) has seen its film "Zootopia 2" achieve massive initial success, setting a global animated film box office record and, crucially, solidifying Disney's robust market foundation in China. Disney shares have risen for four consecutive days; is it still a good time to buy?

On the first trading day of December, the S&P 500, Nasdaq, and Dow Jones indices all fell due to liquidity pressures stemming from expectations of a Bank of Japan interest rate hike. However, Disney's stock defied the broader market trend, climbing 2.20% and cumulatively rising approximately 5% over the past four trading days.

"Zootopia 2," released on Thanksgiving 2025, serves as a core catalyst for Disney's stock performance. Following months of subdued box office results, this Disney-produced animated film, set in an anthropomorphic animal city, has brought hope to sluggish cinemas and Disney's outlook with its record-breaking box office performance.

According to Box Office Mojo data, "Zootopia 2" achieved a global box office of $556 million in its five-day opening, marking the highest animated film debut in history.

Of this, the U.S. market generated $156 million, setting the second-highest Thanksgiving five-day opening record, trailing only last year's "Moana 2." Overseas box office garnered $400 million, with the majority attributed to the Chinese market.

Maoyan data indicates that "Zootopia 2" reached 1.95 billion RMB (approximately $275.6 million) in box office revenue within its first six days in China, making it the highest-grossing foreign animated film in China's history.

Industry insiders note that this is undoubtedly Disney's most important film in China this year, with its themes of individual resilience and social harmony deeply resonating with Chinese consumers.

For Disney stock investors, this blockbuster animated film signals two key developments: a robust cultural foundation for Disney in the Chinese market and a comprehensive recovery, addressing financial shortcomings.

Confirming Disney Films' Appeal in China

In the nine years since the first "Zootopia" premiered in 2016, China's foreign film landscape has undergone dramatic changes. Domestic films like "Nezha" have significantly eclipsed the popularity of international releases from companies like Disney.

The reasons behind foreign films' dwindling popularity in China are complex. These include a waning interest among Chinese audiences in Hollywood culture and models, a growing embrace of local values and cultural symbols, an uneven recovery of the film market post-pandemic, and the extension of U.S.-China geopolitical rivalry into the cultural sphere.

Film critics have noted that the success of "Zootopia 2" exceeded expectations. The Chinese market made a significant contribution to the animated sequel's record-breaking performance, despite China's noticeably cooler reception to Hollywood films over the past five years.

The Wall Street Journal reported that the film dominated the U.S. box office over the Thanksgiving weekend, further demonstrating that the right Hollywood movie can still generate substantial revenue in China.

Notably, Disney recognized the franchise's popularity in China long ago, having opened the world's only Zootopia-themed land at Shanghai Disney Resort in 2023.

PP Foresight stated that despite ongoing geopolitical tensions and macroeconomic uncertainties, China remains a vast and expanding market for theme parks, films, and merchandise.

Addressing Film Entertainment Weaknesses

In its Q4 fiscal year 2025 earnings report, covering the period ending September, Disney reported lower-than-expected revenue, with declines in its cable television and theatrical businesses proving to be a "thorn" in the results.

Given "Zootopia 2"'s current box office momentum, the theatrical business is poised for a pleasant surprise in the December quarter. Furthermore, "Avatar," scheduled for release on December 19, is also expected to contribute significant box office revenue before the fiscal quarter concludes.

The success of Disney films is not merely about impressive box office numbers; it lies in the full-chain business opportunities they generate, including driving streaming subscriptions, licensing sales, authorized merchandise, and theme park attendance.

Since December 2023, Zootopia IP-related licensing business has tripled in China, with over 2,000 related licensed products expected to launch by the end of this year.

Incomplete statistics show that nearly 60 brands collaborated on IP tie-ins in the six months leading up to "Zootopia 2"'s official release, including Pop Mart, Miniso, Uniqlo, Starbucks, and China Eastern Airlines.

According to Seeking Alpha, analysts project that Disney's earnings per share (EPS) growth, which has slowed for three consecutive quarters since Q1 fiscal year 2025, may see an inflection point in Q1 fiscal year 2026, followed by accelerating growth for at least three subsequent quarters.