Disney (DIS) Stock Soars 24.4% in 2024, Revamped Streaming Business and FuboTV Deal Drive Turnaround

Disney (DIS) gained 24.4% in 2024, slightly outpacing the S&P 500's 23.3% return, marking a significant turnaround for the entertainment giant.

After a difficult 2023, marked by layoffs, streaming losses, and the departure of CEO Bob Chapek, The Walt Disney Company (NYSE:DIS) stock price rebounded in 2024, thanks to the return of cash dividends, strong streaming growth, and the announcement of a new carriage agreement with FuboTV (NYSE:FUBO).

Disney stock rose 24.4% in 2024, slightly outpacing the S&P 500's 23.3% return. The entertainment giant also returned to profitable growth, helped by the streaming business, which shifted from being a drain on profits to becoming a promising source of income.

Disney's success in revamping its streaming business was a major factor in this recovery. Disney+ and Hulu are growing, and vast content library and its ability to scale its operations boosted profitability.

To bolster its DTC division, Disney announced that it would combine its Hulu and Live TV business with FuboTV, with Disney becoming the majority owner.

This strategic deal allows Disney to:

Disney also signed a new carriage agreement with Fubo, enabling the launch of a sports service featuring Disney's premier networks, further strengthening its presence in digital sports and entertainment.

Disney's streaming efforts remain at the core of its growth strategy. The company's ability to raise prices periodically without significant subscriber losses, along with its integration of ESPN content into Disney+, enhances its bundled offerings.

Disney is also set to launch a DTC ESPN service in fall 2025, which will feature fantasy sports, advanced statistics, and betting options. These features cater to evolving consumer preferences, positioning Disney to capitalize on the growing sports entertainment market.

Disney projects high-single-digit EPS growth for fiscal 2025, with double-digit growth expected in 2026 and 2027, driven by its robust entertainment business and growing DTC platforms.

While the growth trajectory looks promising, some analysts have a “Moderate Buy” consensus rating on the stock. This suggests that the optimism around Disney is already reflected in its current stock price, indicating limited room for further price appreciation unless the company exceeds expectations.

Disney's multi-pronged strategy, including its streaming business, sports ventures, and iconic theme parks, sets the stage for long-term growth. The strategic partnership with FuboTV and the expansion into DTC sports further solidify its market position.