Wells Fargo urges Disney to rethink streaming, arguing shares could rise as much as 40%

The Walt Disney Company is facing fresh scrutiny on its streaming strategy after a Wells Fargo analyst proposed a sharply different path for the business, arguing that Disney’s equity could be worth materially more if the company “ditches” streaming, according to a report carried by Yahoo Finance on July 13, 2026.

The note, authored by Wells Fargo analyst Steven Cahall, frames streaming as a costly distraction relative to other areas of Disney’s portfolio. The Yahoo Finance write-up characterizes the thesis as bold and counter to conventional streaming-growth expectations, and it ties the investment-case upgrade to the potential elimination or downsizing of streaming commitments.

In the market reaction to that framing, the report highlights a specific figure: Wells Fargo’s view that Disney’s stock could rise by as much as 40%. That estimate is presented as part of the analyst’s valuation work, but the Yahoo Finance summary does not lay out the detailed methodology, time horizon, or assumptions in the information available here.

The debate matters because Disney, like many large media companies, has spent years trying to use streaming to win households and diversify beyond traditional distribution. Those same companies, however, have faced persistent questions about whether subscriber growth can translate into sustained operating profit, especially when content budgets and marketing spending rise alongside competition.

Wells Fargo’s core point, as described in the Yahoo Finance coverage, is essentially strategic: that continuing to treat streaming as a primary engine may not be the most efficient way to maximize shareholder value. In this view, resources tied up in streaming could be redirected toward initiatives that produce clearer cash returns or align more directly with Disney’s scale advantages.

The Yahoo Finance summary, as reflected in the available information here, does not include supporting details such as what “ditching streaming” would practically mean for Disney’s existing services, how long subscribers would retain access, or how management would unwind contracts, technology costs, or content obligations. It also does not specify whether the thesis assumes a full exit, a broader platform change, or a more limited reduction in spending.

Disney did not provide additional disclosure in the information available here beyond the context of the market-news coverage. Any concrete company response, timing, or operational plan would require a direct statement from Disney, its investor materials, or a regulatory filing.

Market participants will likely watch for whether Disney addresses streaming economics in its next investor communications, and whether analysts who disagree with Wells Fargo revisit their valuation models. The key question is how any strategic shift, if contemplated, would be executed without disrupting the company’s broader media, sports, and entertainment ecosystems.