Disney Missed Out on Monday's Market Rally. Is It a Red Flag for the Entertainment Giant?

By Jeremy Bowman – Mar 24, 2026 at 12:53AM ESTKey PointsDisney has fallen over the last month in part due to fears about the war in Iran.It was one of a small percentage of stocks that fell on Monday, despite good news out of Iran.Disney's streaming profit hasn't yet replace profit from linear media.

Walt Disney Co (DIS 1.63%) has seemingly been in flux for the last decade. Over that period, the entertainment giant acquired Fox's entertainment assets, launched Disney+, managed through the pandemic, replaced its CEO, brought back Bob Iger, and now Iger has officially retired, replaced by new CEO Josh D'Amaro. During that time, Disney has retained its primacy in family entertainment and built an impressive streaming business, but the stock has gone nowhere, as it is basically flat over the last decade, while the S&P 500 has more than tripled. D'Amaro takes over during a challenging period. Not only has the business struggled to move past the linear media era, but the geopolitical situation in Iran has put pressure on the travel sector, and tourism makes up a substantial portion of Disney's revenue. While the company lumps in its parks, experiences, and consumer products business into one segment, the vast majority of that revenue comes from its theme parks and related businesses like its cruise line. Disney's theme parks have proven to be its most important cash cow over the last decade, driving wide profit margins, while the streaming business has struggled and is cannibalizing its linear TV and box office movie business. In fiscal 2025, Disney grew its experiences business by 6% to $36.2 billion and reported a $10 billion operating profit, making up more than half of its profit. Image source: Disney. What happened on Monday Stocks soared Monday on a relief rally driven by President Trump's decision to pause an attack on Iranian power plant infrastructure while the two sides negotiate. Risk-on, cyclical stocks jumped, and that pattern was clear from the performance of the Dow Jones Industrial Average, as only six of the 30 stocks fell, and those were primarily defensive stocks. However, Disney was an outlier. Though its parks business has a ton of exposure to cyclical forces, Disney stock fell 1.6% on the day. Investors seem to be saying that even the end of the war or a cooling of tensions isn't enough to push the stock higher. With oil prices rising, plane tickets are likely to go up, and consumers will have less discretionary income to spend at places like Disney World. ExpandNYSE: DISWalt DisneyToday's Change(-1.63%) $-1.62Current Price$97.89Key Data PointsMarket Cap$174BDay's Range$97.87 - $100.6152wk Range$80.10 - $124.69Volume362KAvg Vol12MGross Margin31.61%Dividend Yield1.28% What it means for Disney One day's performance does not make a stock, but Disney's fall stands out, given that it would benefit from an end to tensions in Iran. With the sell-off, investors seem to be saying that Disney stock can't rely on the macro environment for its recovery. It will have to earn it through concrete business improvements. For the current fiscal year, the company is targeting double-digit adjusted earnings per share. That's not a bad target, but right now, investors seem to be skeptical toward D'Amaro. Disney's stock has fallen through March, and it will need some help from management to turn it around. D'Amaro deserves some patience from investors, but Disney's entertainment business is challenged by the decline of linear TV, and its theme parks could face a setback from the war. Disney could have another tough year ahead of it. Read NextMar 19, 2026 •By Neil PatelCrashing 51%, 3 Reasons to Buy This Netflix Rival in March and Hold for 5 YearsMar 18, 2026 •By Rick MunarrizA Letter to Disney's New CEOMar 18, 2026 •By Jack DelaneyNetflix vs. Disney: Which Streaming Giant Is the Better Buy for 2026 and Beyond?Mar 16, 2026 •By Rick MunarrizOscars? Disney Doesn't Need No Stinkin' Oscar.Mar 16, 2026 •By Matt Frankel, CFPCould Disney Actually Hit $1 Trillion by 2035? Here's the Case For ItMar 15, 2026 •By Neil PatelNetflix vs. Walt Disney: Which Stock Will Make You Richer?About the AuthorJeremy Bowman has been a contributing Motley Fool stock market analyst, covering technology, consumer goods, and macroeconomic trends since 2011.

Before The Motley Fool, Jeremy was a newspaper reporter, restaurant manager, and English teacher abroad. He holds a bachelor’s degree in English from Colorado College and a master’s degree in business administration from American University. One of his Motley Fool headlines was briefly featured on Late Night with Stephen Colbert.TMFHoboX@TMFBowmanStocks MentionedWalt DisneyNYSE: DIS$97.95(-1.57%)-$1.56FoxNASDAQ: FOXA$57.28(-0.93%)-$0.54*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.