Netflix Falls 24%, Disney Down 7.6% as Wall Street Focuses on Streaming ROI Over Growth

According to Wells Fargo, Disney shares fell 7.6% in the past three months as of July 24, joining other major streaming platforms in recent declines. Netflix dropped 24.2%, Warner Bros. Discovery fell 4.8%, and Paramount Skydance declined 25.2% during the same period.

Wells Fargo released a report suggesting Disney's enterprise value could increase up to 40% if the company exits direct streaming operations and focuses on content production and licensing instead. The investment bank estimated Disney could generate over $15 billion annually from licensing business alone by 2028, with Netflix, Apple, Amazon, and YouTube as potential content buyers. Wall Street's investment focus has shifted from subscriber growth to return on investment (ROI), reflecting concerns about streaming platforms' structural profitability limits despite recent improvements.