Wells Fargo Urges Disney to Exit Streaming Business

Wells Fargo Securities suggests that The Walt Disney Company could see a stock price increase of up to 40% if it exits the streaming-video business. The firm recommends that Disney refocus its operations on producing and licensing content rather than attempting to distribute it via its own platforms.

Analyst Steven Cahall argues that the company is unable to compete with high-volume streamers such as Netflix and YouTube, suggesting this strategic pivot has contributed to the stock's long-term underperformance. Wells Fargo estimates that a shift toward pure content and intellectual property licensing could generate more than $15 billion in annual revenue.

Despite the recommendation to change business models, Wells Fargo maintains an overweight rating on the stock, though it lowered its price target from $146 to $125. The move comes as intellectual property assets appreciate faster than physical investments and competition for top-tier content intensifies among global streaming platforms.