Shares of InterDigital surged 22.5% to $338.00 in pre-market trading on June 29, capping a month in which the patent-licensing company scored back-to-back wins against two of the world's largest streaming platforms — raising the question of how much further this stock can run.

  • A Court Order That Spans 11 Countries Puts Real Pressure on Disney

On June 16, the Mannheim Local Division of the Unified Patent Court ruled that Disney infringed an InterDigital patent covering video compression techniques, granting an injunction that spans 11 EU countries.

This is the first injunction InterDigital has won against Disney through the pan-European court system, though it already holds injunctions from courts in Germany and Brazil. The practical effect: Disney+ could face service restrictions in those markets unless it licenses the technology or wins an appeal. The market "is not yet treating it as thesis breaking" for Disney, but it could complicate one of Disney's key profit drivers if licensing outcomes don't go its way.

  • Amazon Settled — Disney May Have To Follow

On June 11, InterDigital and Amazon finalized a patent licensing agreement covering all Amazon services and devices, including Prime Video, effectively resolving ongoing litigation between the two companies.

InterDigital shares surged as much as 18% on that news alone. The Amazon deal validates InterDigital's push to collect royalties from streaming services — not just device makers — and strengthens its hand in the Disney fight. If Disney settles rather than risks losing access across Europe, the resulting deal could add a significant new recurring revenue stream.

  • Earnings Topped Expectations, and Analysts Say the Stock Is Still Cheap

InterDigital's Q1 2026 earnings per share hit $2.57, beating the forecast of $1.64 by 57%, with revenue reaching $205 million versus $167 million expected. The company reaffirmed its full-year 2026 revenue outlook of $675M–$775M.

The average 12-month analyst price target sits at $462.67, with a high of $488. Even after today's jump to $338, that consensus target implies roughly 37% further upside.

  • Insiders Are Selling Into Strength — A Yellow Flag

Insiders sold a total of $3.4 million in shares over the past three months with no reported buying.

The stock's all-time closing high was $394.78 in November 2025 — still above today's price, but the gap is closing fast. Investors chasing this rally should weigh the legal wins against the reality that Disney can appeal the decision and final Amazon licensing terms remain unresolved, headed to binding arbitration.