Walt Disney (NYSE: DIS) and Warner Bros. Discovery (NASDAQ: WBD) both disappointed investors with dismal returns this year. Disney's stock declined nearly 40% as inflationary headwinds throttled the post-pandemic recovery of its media and theme park businesses. The widening losses at its streaming business and the rising dollar exacerbated that pain.

Warner Bros. Discovery's stock has declined nearly 60% since it was spun off from AT&T in a merger with Discovery this April. Just like Disney, Warner's movie and media segments struggled with inflationary headwinds, while higher streaming expenses squeezed its operating margins. But unlike Disney, Warner couldn't offset that pressure with inflows from any theme parks or resorts.

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Source Fool.com