Overview
- A Wells Fargo research note by analyst Steven Cahall, published Monday, recommended that Disney abandon direct-to-consumer streaming and return to a production-and-licensing model.
- Wells Fargo estimated that licensing could produce over $15 billion annually by fiscal 2028 and argued the change could raise earnings per share and unlock roughly 40% upside to the stock.
- The firm kept an Overweight rating on Disney while cutting its price target to $125 from $146, and the note moved the stock about 1.7% higher in early trading.
- Disney has made no public change to strategy and continues to invest in Disney+, with recent moves such as price increases, ad-supported tiers, Hulu/ESPN bundling and a stake in Fubo showing the company prefers tweaks over a full exit.
- Analysts warn a full exit would be legally and operationally complex because it would require dismantling streaming infrastructure and renegotiating global licensing, yet the report has reignited investor debate and could pressure management or potential partners to clarify distribution plans.