Walt Disney (NYSE: DIS) stock is down 5% this year as investors are concerned about the company's future growth prospects. And that's even as Disney is coming off an encouraging quarter, where it posted a profit from its streaming business earlier than expected.

It should have come as a positive surprise, potentially sparking a rally for the stock, but that hasn't been the case. Why are investors down on the company's performance, and does the weakness in the stock's valuation make now a good time to add the entertainment stock to your portfolio?

Disney reported earnings this month and revenue for the period ending June 29 rose by 4% to $23.2 billion, coming in slightly better than analyst expectations of $23.1 billion. The company's adjusted per-share profit of $1.39 also soundly beat Wall Street estimates of $1.19.

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Source Fool.com