Should You Buy the Dip on Disney Stock?

By Thomas Niel – Mar 26, 2026 at 12:30AM ESTKey PointsVarious uncertainties have weighed on Disney, including a recent CEO change, as well as the company's streaming strategy.As a result, shares in the media conglomerate have fallen below historic levels, creating opportunity for new and existing investors alike.With expectations set so low, any sign of a growth resurgence could give way to a big rebound for the stock.Shares in the Walt Disney (DIS 0.46%) have been off to a rough start so far in 2026. Since January, shares in the media conglomerate have pulled back by around 15%. There are numerous reasons Disney shares have come under pressure, including uncertainty about the company's newest CEO and ongoing concerns about its linear TV-to-streaming transformation. ExpandNYSE: DISWalt DisneyToday's Change(-0.46%) $-0.44Current Price$95.95Key Data PointsMarket Cap$170BDay's Range$95.06 - $97.1852wk Range$80.10 - $124.69Volume8.5MAvg Vol12MGross Margin31.61%Dividend Yield1.30% However, while this may be a frustrating turn of events for existing Disney stock investors, if you've yet to enter a position or want to add to one, current lukewarm sentiment for this media stock may work in your favor. Image source: Getty Images. Disney, its new CEO, and why shares have tanked since earnings On Feb. 2, Disney released earnings for its first-quarter fiscal year (FY) 2026, the quarter ending Dec. 27, 2025. While the results themselves came in ahead of expectations, a major change announced at the same time had a larger impact on investor sentiment. Together with the earnings release, Disney announced its plans to promote Josh D'Amaro, previously the head of the company's theme parks division, to replace CEO Bob Iger. There are many reasons D'Amaro was a natural fit for the role, including the fact that Disney's parks unit, Disney Experiences, is the company's most profitable, generating 71% of its overall operating income last quarter. However, there is still uncertainty over D'Amaro, especially given his lack of experience on the content side of the business. While not certain, there may be concerns that D'Amaro lacks the expertise to finish executing what has been Disney's biggest strategic challenge as of late. That would be the transformation of its streaming business into a cash cow that generates enough cash flow to counter the further decline of Disney's broadcast and cable television networks. Low expectations could work in everyone's favor D'Amaro may be entering the CEO role with low expectations; this dynamic could benefit him and investors buying in today as well. Knowing full well the pressures, D'Amaro could decide to make a risky but bold move to reinstate investor confidence. For instance, he could make one of several moves recommended by Guggenheim analyst Michael Morris. These include a spin-off of Disney's linear TV business, greater investment in new media franchises, reducing Disney's dependence on sequels and remakes, or even the acquisition of a major company in the user-generated content space. In the meantime, Disney trades for only 15 times forward earnings, below its historic valuation of around 20 and below that of streaming service stocks like Netflix, which trades for 29 times forward earnings. Any sort of hint of a possible growth resurgence could be enough to shift sentiment back to bullish. While it may take some time for D'Amaro to establish and execute his own vision for Disney, now, while expectations remain low, may be the time to start buying Disney stock. Down the road, perhaps as early as Disney's next earnings release in May, sentiment could turn on a dime, with shares making a quick return to bull-market mode.Read NextMar 24, 2026 •By Jeremy BowmanDisney Missed Out on Monday's Market Rally. Is It a Red Flag for the Entertainment Giant?Mar 19, 2026 •By Neil PatelCrashing 51%, 3 Reasons to Buy This Netflix Rival in March and Hold for 5 YearsMar 18, 2026 •By Matt DiLalloBest Cyclical Stocks to Buy in 2026: Everything Investors Need to KnowMar 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 18, 2026 •By Rachel WarrenBest Travel and Tourism Stocks for 2026 and How to InvestAbout the AuthorThomas Niel is a contributing Analyst at The Motley Fool, covering publicly traded companies in the consumer goods and technology sectors. Prior to the Motley Fool, Thomas was a contributing Analyst for several online investing publications, including InvestorPlace, Seeking Alpha, and TipRanks. He also has past career experience in the accounting and government contracting industries. He holds a B.B.A. in Accounting from Marymount University. Thomas won his school's geography bee in the fifth grade, but retired from the professional geography bee circuit shortly thereafter.TMFThomasNielStocks MentionedWalt DisneyNYSE: DIS$95.95(-0.46%)-$0.44*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.