Disney Stock Continues Winning Streak: More on Their Money-Earning Streaming & Cruising Services

Walt Disney Co (DIS) shares have climbed after analysts upgraded the stock to 'Buy,' citing strong momentum across its streaming and cruise operations.

With a diversified portfolio excelling across digital and physical entertainment, investor sentiment is turning bullish, pushing the stock higher.

How Is Disney Stock So Far?

Disney shares have surged recently, buoyed by upbeat analyst sentiment and strong segment performance. Guggenheim just increased its price target to $140 (£102.12) from $120 (£87.53), maintaining a Buy rating, citing cost efficiencies from the Star India divestiture and robust sports advertising revenue.

Overall, Wall Street consensus remains very positive: most sources peg the average 12-month price target between $126 (£91.90) and $128 (£93.36), with highs around $147 (£107.22) and lows near $95 (£69.29) or $100 (£72.94).

Analyst platforms like TipRanks and StockAnalysis list Disney as a Strong Buy, with approximately 15–23 Buys compared to only 4 Holds. The bullish ratings reflect confidence in Disney's multi-pronged growth—from streaming margins to park and cruise expansions.

Streaming Business' Explosion

In Q2 FY 2025, Disney's streaming segment delivered strong results, adding 2.5 million subscribers across Disney+ and Hulu—1.4 million of which were from Disney+, bringing total paid subs to 126 million and 180.7 million combined. Streaming operating income surged to $336 million (£245.08 million), a remarkable jump from just $47 million (£34.28 million) a year earlier.

The average revenue per Disney+ subscriber increased to $7.77, driven by pricing increases in both domestic ($8.06) and international markets ($7.52). The business achieved profitability in August 2024 and has since maintained its upward trajectory.

'Overall, our expansive portfolio of high-quality content and programming is enabling us to continue to grow revenue and profitability in our streaming business. Streaming remains a key priority and a core growth platform for The Walt Disney Company. And as we move forward, our improvements in the product will continue to enhance the user experience, increase engagement, and reduce churn, thereby enabling us to grow the strategic business at an accelerated rate over time,' CEO Bob Iger said in the company's latest earnings call.

Disney Swimming in Cruise Line Growth

Meanwhile, Disney's cruise segment helped propel the Experiences unit, as operating income hit $2.5 billion (£1.82 billion) in Q2—a 9% year‑over‑year rise—with domestic Parks & Experiences income alone climbing 13% to $1.8 billion (£1.31 billion).

Cruise growth was driven by increased passenger cruise days, led by the inaugural Disney Treasure, and higher onboard spending, offset slightly by fleet expansion costs—including ~$35 million (~£25.53 million) in pre‑opening expenses for upcoming ships Disney Destiny and Disney Adventure.

Moreover, capital expenditures surged to $4.3 billion (£3.14 billion)—up from $2.6 billion (£1.90 billion)—primarily to support cruise fleet expansion.

'Our outstanding performance this quarter—with adjusted EPS up 20% from the prior year driven by our Entertainment and Experiences businesses—underscores our continued success building for growth and executing across our strategic priorities,' Igor added.

With new ships like the Disney Destiny and Disney Adventure on the horizon, analysts see a long-term upside in Disney's ability to expand its physical footprint alongside its digital growth. This dual strength is helping restore investor confidence and pushing shares higher.