Jim Cramer, famed television personality and host of the popular CNBC show “Mad Money,” has come out in favor of Disney (DIS). Cramer believes the entertainment giant, after a rough patch, is poised for a rebound thanks to the unexpected success of Lilo & Stitch, the live-action remake of the beloved 2002 animated classic.

The movie made a spectacular Memorial Day weekend with a $183 million domestic box-office haul, and Disney reported on May 27 that it had earned $361.3 million worldwide to date, leading to Disney becoming the first studio to crossed $2 billion in collections at the global box office in 2025.

However, amid all the excitement, DIS stock is still flat on a YTD basis, with a market cap of $200.5 billion. So, is Cramer’s optimism around the “House of the Mouse” justified or should investors make a beeline for the stock? Let’s find out.

Disney Posts Solid Q2 Results

Since CEO Bob Iger’s return to the helm, Disney’s operations have stabilized, with revenue and earnings experiencing compound annual growth rates (CAGRs) of 7.1% and 43.8%, respectively.

The strong showing continued in the most recent quarter as well with Disney reporting a beat on both revenue and earnings. Revenue grew by 6.8% from the previous year to $23.6 billion, and the company moved into profitability in Q2 2025 with EPS of $1.81 compared to a loss of $0.01 per share in the year-ago period.

All the key revenue segments of the company clocked growth, with the Entertainment, Sports, and Experiences segments growing by 9%, 5% and 6% on a year-over-year basis to $10.7 billion, $4.5 billion and $8.9 billion, respectively. Moreover, Disney+ saw its total paid subscribers rise to 126 million from 124.6 million in the prior year with an improvement in monthly revenue per paid subscriber to $7.77 from $7.55 in the same period.

Disney’s cash flow from operations for the quarter stood at $9.9 billion (vs $5.8 billion in Q2 2024), with free cash flow rising to $5.6 billion from $3.3 billion in the prior year. 

Analysts project forward revenue and earnings growth rates of 3.99% and 61.75% for Disney, which are ahead of the sector medians of 3.18% and 11.13%, respectively.

Core Drivers

The primary reason Disney has become a focus of investor enthusiasm is its ambitious blueprint to expand across physical entertainment destinations and interactive digital experiences. A major component of this strategy is the company’s decision to establish its next flagship theme park on Yas Island in Abu Dhabi. This forthcoming resort will become Disney’s seventh such complex and, according to Josh D’Amaro, who leads Disney Experiences, it is poised to be the most advanced and interactive project the company has ever developed. While no opening date has been disclosed, the announcement alone marks a significant step in Disney’s global growth efforts.

Alongside international expansion, substantial updates are also planned for Disney’s domestic parks. In Anaheim, the Avengers-themed zone will see considerable growth, while a new Avatar-based experience is set to be introduced at California Adventure. In Florida, Magic Kingdom will unveil an entire area focused on classic Disney villains, and Animal Kingdom will debut a new Indiana Jones narrative. Additions are also coming to other corners of the Walt Disney World Resort, including a Monsters, Inc.-inspired space at Hollywood Studios and a new extension in Frontierland featuring characters and themes from the Cars franchise.

Simultaneously, Disney is investing heavily in gaming and digital realms. Through a $1.5 billion equity stake in Epic Games, the company has laid the groundwork for an entirely new entertainment universe inspired by Fortnite. This initiative will incorporate beloved Disney franchises such as Star Wars and Marvel, with Epic’s Unreal Engine serving as the backbone for game development and immersive storytelling.

Beyond content creation, the company is actively restructuring its streaming and media business to drive efficiency and monetization. One major move involves integrating its three streaming services — Disney+, Hulu, and ESPN+ — into a singular platform that emphasizes user customization and value-oriented bundling. Disney also intends to bring ESPN directly to consumers via a new standalone product in the coming months. In parallel, the company is finalizing a transaction that will see Hulu + Live TV combine with fuboTV in a multibillion-dollar deal, resulting in Disney holding a 70% stake in the newly merged streaming service.

Taken together, these moves reflect a broader strategic vision — one that merges Disney’s strengths in storytelling, technology, and global brand loyalty. With physical expansion complementing innovation in digital engagement and content distribution, Disney is setting the stage not only for continued financial growth but for deeper consumer interaction with its franchises. For shareholders, the convergence of theme park development, gaming ventures, and streaming integration paints a compelling picture of a company aligning its core assets to meet evolving consumer demands and unlock long-term value.

Analyst Opinions on DIS Stock 

Overall, analysts have attributed a rating of “Strong Buy” for Disney stock with a mean target price of $125.73, which denotes an upside potential of about 12% from current levels. Out of 29 analysts covering the stock, 21 have a “Strong Buy” rating, two have a “Moderate Buy” rating, and six have a “Hold” rating.