Shares of Walt Disney (NYSE: DIS) are failing to keep up with the market for the fourth time in the last five years. The company still has another seven months to turn things around. What will it take to get back on track?
This should be a big month for Disney. It has two big movies opening this month. There's an important financial update coming in a few days. A rival is opening the first major theme park in this country since 1999. There's a lot to unpack here, so let's start at the top. Let's take a closer look at some dates that Disney investors will be watching in May.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Image source: Disney.
Earnings season is well underway, and it's Disney's turn to step up with fresh financials when it announces its fiscal second-quarter results on Wednesday morning. Analysts aren't holding out for much. They see revenue rising just shy of 5% to hit $23.1 billion through the first three months of this calendar year. Those same Wall Street pros also see a profit of $1.21 a share for the quarter, flat with where it landed a year earlier.
It could be worse than that. Rival Comcast (NASDAQ: CMCSA) -- owner of NBCUniversal and the Universal Studios theme parks -- offered disappointing results on both ends of the businesses where it competes with Disney. Its theme parks and domestic advertising segments experienced year-over-year declines.
To Disney's credit, it has easily exceeded analyst profit targets over the past year. It won't be easy this time, but momentum remains on its side. If the House of Mouse is able to continue expanding on the profitable turn of Disney+ a year ago, it could deliver another positive surprise on the bottom line.
Investors will want to check the report to see whether Disney's outlook has changed. If the economy is starting to feel the pinch, you will see it in reduced bookings for Disney getaways.
Disney knows how to turn mile markers into hitching posts. Its original Disneyland theme park in California turns 70 this summer, and the media giant is starting the birthday party two months early. On May 16, Disneyland is kicking off a celebration for the resort's major milestone with limited-time entertainment, themed eats, and merchandise.
Two months later, on the resort's actual July 17 anniversary, Disneyland will debut Walt Disney -- A Magical Life, an attraction featuring an audio-animatronic of Walt himself. You'll have plenty of time to check out the festivities. Remember how Disney World in Florida celebrated its first five decades of operation with an 18-month event? This time, Disneyland will continue celebrating its first seven decades through the summer of 2026.
Theme park enthusiasts will have their eyes on Central Florida on May 22 when Comcast opens Epic Universe. It's the first new major gated attraction to open since Disney California Adventure was introduced more than 24 years ago. It remains to be seen whether it will help or hurt Disney World.
Epic Universe will certainly attract visitors in the area, especially if it can overcome the shortcomings it's been exhibiting during its paid park previews in recent weeks. However, it should also lead to an overall spike in tourism to the area. With the normal capacity constraints of a new park, other attractions can benefit from the surge in area visitors.
I mentioned that Disney has two big movies coming out this month. The first one hit theaters this weekend. Thunderbots is the latest Marvel property to debut at a multiplex near you. It's off to a decent start, and the best-case scenario is that the strong initial reviews give it an extended stay as a springtime sleeper hit.
The larger release will come later this month when Lilo & Stitch is reimagined as a live-action feature film on May 23. It's fair to say Disney's Snow White failed to woo audiences. It barely topped $200 million in box office receipts worldwide. Lilo & Stitch should fare considerably better, possibly even besting A Minecraft Movie as the highest-grossing domestic release so far in 2025.
It's not just Disneyland getting some new attractions. Disney Villains: Unfairly Ever After will premiere at Disney's Hollywood Studios in Florida. It's not the only live show debuting that day at the park. The Little Mermaid: A Magical Adventure is also returning.
It's not a coincidence that Disney is pushing out some new experiences just five days after Epic Universe officially opens. Disney may be unable to compete with the sheer breadth of what Epic Universe brings to the competitive landscape, but it's a good idea to give Disney fans a reason to come back ahead of the long summer travel season.
Before you buy stock in Walt Disney, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Walt Disney wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $623,685!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $701,781!*
Now, it’s worth noting Stock Advisor’s total average return is 906% — a market-crushing outperformance compared to 164% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of April 28, 2025
Rick Munarriz has positions in Comcast and Walt Disney. The Motley Fool has positions in and recommends Walt Disney. The Motley Fool recommends Comcast. The Motley Fool has a disclosure policy.