Entertainment giant Disney (DIS) just got hit with a big surprise, as its massive hit Inside Out 2 is no longer quite as massive as it once was. Though it started out the holiday weekend as the highest-grossing animated film of all time, the weekend pulled that title out from under it. That was enough for concern among investors, who sent shares down 1.5% in Monday afternoon’s trading.
Inside Out 2 is now merely the second-highest grossing animated film of all time, overthrown by Chinese animated film Ne Zha 2. This might amaze some; Ne Zha 2 is virtually unheard of outside of China, and is only playing in about a quarter of North American theaters. But with a box office take of $1.9 billion, the power of the Chinese market is still in effect, even if some reports suggest that large portions of that power have been diminished in recent months.
Inside Out 2, for its part, could only pull $1.7 billion. This is an accomplishment by any measure, but against that $1.9 billion, Inside Out 2 could only go so far. And indeed, it was the Chinese take that pushed Ne Zha 2 to such heights; it reportedly only made about $20 million in North America. The rest of that $1.9 billion came from within its home country.
Reviving the Parks
Meanwhile, Disney has been working avidly to get interest going in its parks again, despite prices running amok for months now. One move may help in particular; in 2026, there will be a hotel deal for Disney that gives kids free food. Those who stay at a Disney hotel and enroll in the Disney Dining Plan will be able to get kids ages three through nine free meals. Naturally, plenty of conditions apply, so be sure to check it out yourself if interested.
That, combined with Disney’s impressive customer service, immersive environment, and sheer range of options is keeping at least some customers coming back. Not all of them, certainly; the price-sensitive are still biding their time. But the more Disney can do to improve value, the better off its live experiences will be, especially once the current economic uncertainty gets resolved.
Is Disney Stock a Buy or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on DIS stock based on 16 Buys and four Holds assigned in the past three months, as indicated by the graphic below. After a 24.82% loss in its share price over the past year, the average DIS price target of $126.05 per share implies 50.78% upside potential.
