Disney's focus on streaming is paying off, with potential for a 2x increase in stock

From Nasdaq: 2024-11-27 01:17:47

Disney’s Q4 results show streaming growth offsetting theme park and cable TV declines. Disney+ brought in $23 billion in revenue in FY’24, closing in on Netflix’s $39 billion. Disney stock may be undervalued given its streaming potential, with a 2x increase possible. Disney’s focus on streaming is paying off, with DTC revenue up 15% and operating profits turning positive. Disney+ and Hulu subscriber numbers are growing, boosted by price hikes. Disney’s ad-supported tier is thriving, attracting more users and revenue. Despite Netflix’s lead in subscribers and ARPU, Disney’s potential lies in its IP library and streaming margins. Disney’s push for paid sharing and lower marketing costs could further boost its streaming business. Disney’s bundled streaming service, including Disney+, Hulu, and ESPN+, for $17/month has increased user retention. Disney’s investments in streaming have a long lifetime value, unlike Netflix. Disney’s content investments are bolstered by iconic franchises, while Netflix focuses on one-off shows. Disney’s returns have outperformed the S&P 500 and Trefis Reinforced Value Portfolio. Invest with Trefis for market-beating portfolios.



Read more at Nasdaq: Can Streaming Gains Drive Disney Stock 2x?