Disney Lags Behind S&P 500 as Tech Stocks Dominate 2025 Gains

As of November 13, 2025, shares of The Walt Disney Company (DIS) have been a disappointment to investors over the past year. The stock has languished in a mostly sideways pattern, with rallies few and far between. While Disney shares did reach their highest levels in the past three years in mid-summer 2025, they have since fallen back down.

Overall, Disney is up only about 5% on a year-to-date basis in 2025, a year in which the S&P 500 has surged nearly 17%. This stark underperformance has left investors wondering why Disney is struggling to keep pace with the broader market.

One key factor holding Disney back is the market's love affair with artificial intelligence (AI) and technology stocks. The top seven winners in the S&P 500 so far this year are all tech or AI-related companies, including Western Digital, Robinhood, and Palantir Technologies. This clearly shows where investor money is flowing in 2025, and it's not into traditional media and entertainment stocks like Disney.

Additionally, Disney's traditional TV business, which includes broadcast stations like ABC and FX, is hurting as the world continues to shift towards streaming. The company's third-quarter earnings report for fiscal 2025 showed a 28% drop in revenue for its linear networks, due to lower viewership and falling advertising revenue.

While Disney faces some significant headwinds, the company's long-term prospects remain promising. Over the past year, its stock performance has actually been on par with the S&P 500, suggesting the recent underperformance may be temporary. As Disney continues to adapt to the changing media landscape, investors will be closely watching to see if the company can regain its footing and deliver stronger returns in the years ahead.