Why is Disney stock underperforming the S&P 500 in 2025?

Disney's traditional TV business is hurting due to the shift to streaming, and investors are favoring tech and AI-related stocks over Disney in 2025.

How has Disney's stock performed compared to the broader market over the past year?

Over the past one-year period, Disney's stock performance has been on par with the S&P 500, suggesting the recent underperformance may be temporary.

What are some of the top-performing stocks in the S&P 500 so far in 2025?

The top seven winners in the S&P 500 for the year so far are Western Digital, Robinhood, Seagate Technology, Micron Technology, Newmont, Palantir Technologies, and Lam Research.

Home / Business and Economy / Disney Lags Behind S&P 500 as Tech Stocks Dominate 2025 Gains

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

13 Nov

•

Summary

Disney stock up only 5% in 2025 as S&P 500 surges 17%
Disney's traditional TV business hurting due to shift to streaming
Investors favoring tech and AI-related stocks over Disney in 2025

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.