Walt Disney Co. shares have struggled for years, but Wells Fargo Securities sees a potential game‑changer: abandoning its streaming‑video arm. The bank argues that shedding a costly streaming model could unlock value, potentially sparking a 40% rally in Disney’s stock.

Wells Fargo’s analysis highlights that streaming has been a drag on margins, with heavy subscriber acquisition costs and under‑performing revenue growth. By exiting the sector, Disney could refocus on higher‑margin parks, media networks, and merchandise—areas that historically deliver stronger profitability.

The bank’s bullish view hinges on a shift in investor sentiment toward a more streamlined, debt‑free Disney. If the company follows through, it could see a surge in institutional buying and a revaluation of its long‑term prospects.

While critics warn that Disney’s streaming content is a key growth engine, Wells Fargo believes the long‑term cost structure outweighs short‑term gains, positioning a 40% upside for the stock.

This scenario underscores the broader debate over the sustainability of streaming models in a saturated market.