Walt Disney Co. DIS is charting a bold course for growth through cruise line expansion and digital content integration, marking a significant pivot in its business strategy amid the changing entertainment landscape.
What Happened: The entertainment giant plans to invest approximately $12 billion in its cruise business over the next decade, aiming to more than double its fleet from six to 13 ships by 2031. The expansion comes as Disney’s newest vessel, the Disney Treasure, recently made its debut in New York Harbor, reported The Wall Street Journal on Sunday.
“Given the fact that we are still a relatively small player and we see this strong demand, it’s actually the best time to invest in this business,” said Thomas Mazloum, head of Disney’s cruise division, noting that Disney currently holds only 5% of the Caribbean market and 2.5% globally.
The cruise expansion coincides with Disney’s digital transformation. The company recently announced the integration of ESPN into Disney+, laying the groundwork for ESPN’s direct-to-consumer service launch in Fall 2025. This move comes as Disney’s fourth-quarter revenue reached $22.57 billion, exceeding analyst expectations.
Why It Matters: Disney’s content strategy is showing promise, with “Moana 2” breaking Thanksgiving box office records with $221 million in earnings. This success comes as the company settles a significant $43.25 million gender pay discrimination lawsuit, demonstrating corporate responsibility alongside business growth.
Disney’s premium cruise pricing strategy is reflected in a four-day Bahamas cruise, starting at $7,692 for a family of four, more than double the rates of competitor Royal Caribbean Cruises Ltd. RCL. Consumer satisfaction backs this approach, with 82% of Disney cruise passengers expressing intent to return.
Disney’s focus on international markets is evident in its upcoming Disney Adventure ship, set to launch in Singapore next year. This 6,700-passenger vessel targets affluent Asian travelers, marking Disney’s first cruise service in the region.
Price Action: Walt Disney stock closed at $116.73 on Friday, up 0.20% for the day, before slipping 0.03% in after-hours trading; the stock has gained 28.68% year-to-date.
According to data from Benzinga Pro, Walt Disney. has a consensus price target of $121.36, with a high of $140 and a low of $76. The latest analyst ratings from Jefferies, Needham, and Evercore ISI Group set an average target of $128, implying a 9.68% upside.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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