Disney should consider getting out of streaming and refocusing on its core business of producing rather than distributing content, Wells Fargo said. If the legacy entertainment company were to pivot back toward producing, it could boost the stock by as much as 40%, analyst Steven Cahall said Sunday in a note to clients. Disney’s content is getting more valuable while its distributional business is lagging behind its rivals and that competition among streamers is set to intensify, according to the investment firm. “Disney is not set up to compete with Netflix or YouTube on volume. It’s an open question whether their release cadence is sufficient to manage churn for [long-term] margins. What is clear is that [intellectual property] values are climbing,” Cahall wrote. Wells Fargo has an overweight rating on Disney, but it lowered its price target by 14% to $125 from $146. The new target projects shares will rise more than 30% from Friday’s close. Streaming competition is getting more intense, and Disney+ is significantly trailing Netflix and Amazon Prime in terms of paid subscribers, according to analytics firm Quantum Run . Both Netflix and Amazon produce original content, as well. Meanwhile, YouTube viewing on television surpassed viewing on phones last year as the streamer cemented its foothold in home video consumption, the video platform’s CEO Neal Mohan said in 2025. YouTube was the top streamer in terms of watch time for the previous two years, Mohan said, citing Nielsen data. Intellectual property assets – like patents, trademarks and other types of intangible property – have been appreciating at a much faster pace than physical investments in recent years. Intangible investments grew at an annual pace of 5.5% between 2020 and 2025, versus 3.2% for tangible investments, according to a July analysis from the United Nations’ intellectual property agency . “We don’t think the box office, Experiences, or brand value would suffer if the library were on a competing global streamer,” Cahall added.
Disney could rally 40% if it takes this bold step, says Wells Fargo
