Why Is Everybody Picking on Disney?

Sure, Disney (NYSE: DIS) shares have fallen by 35 percent since May. And its recent quarterly earnings report was mixed, with earnings up just a little, after adjustments. But lamentations in the media have been overblown.

Disney's parks and resorts division posted a 7 percent increase in revenue. Operating income did drop 4 percent, but that's due to higher labor and fuel costs (and fuel has since retreated dramatically).

Not everything is zip-a-dee-doo-dahriffic. However, where's the love for the dependable ESPN and Disney Channel cable revenue, which is offsetting lower ad revenue at ABC? Where's the applause for the popularity of the consumer-product division's "Hannah Montana" and "High School Musical" merchandise?

These aren't banner times in the media industry. News Corp. shares were slammed recently after the company lowered its expectations. CBS shares fell, too, even after the company reassured investors that it would keep its beefy dividend. Others, such as Time Warner and Viacom, are relying on steady cable properties, but are also feeling the sting of the fading advertising market.

So hang in there, Mickey. Things aren't great and won't get any better in the near term, but shares seem to have been punished more than they deserved. Recession or worse, entertainment still matters.