Disney is leveraging streaming growth to boost stock, with potential to outperform Netflix
From Nasdaq: 2025-01-23 00:54:51
Disney stock has had a mixed 2025, declining by 3% year-to-date but up 20% since 2024. Streaming business growth is expected to boost stock, with $5.8B revenue from direct-to-consumer segment last quarter. Disney+ has 123M core subscribers, Hulu has 52M. Pricing power evident with subscription hikes driving revenue.
Disney is following Netflix’s strategy with ad-supported tier and paid-sharing feature. Ad-supported Disney+ thriving with half of US subscribers opting for it. Netflix has 283M global subscribers, while Disney has 175M across Hulu and Disney+. Disney’s bundling strategy could improve customer retention and lower churn.
Investments in streaming business could lead to higher profitability for Disney. Marketing costs trending lower, and bundle offerings could lower churn. Disney’s vast intellectual property library, including iconic franchises, ensures a steady pipeline of high-quality content for streaming platforms.
Disney stock has shown volatile returns over the past 4 years, with a mix of negative and positive annual returns. Trefis High Quality Portfolio has outperformed the S&P 500 during the same period. Uncertain macroeconomic environment could impact Disney’s performance in the next 12 months.
Disney stock is valued at $130 per share, 21% higher than the current market price. Check out Trefis analysis of Disney’s valuation for more insights into what’s driving the current price estimate. 1. The stock market experienced a significant drop today, with the S&P 500 falling by 3% and the Dow Jones Industrial Average dropping by 500 points. Investors are concerned about rising inflation and the potential impact on interest rates.
2. In other news, a new study found that over 70% of Americans are now fully vaccinated against COVID-19. This milestone comes as the Delta variant continues to spread, leading to a surge in cases in some parts of the country.
3. The latest report on jobless claims revealed that unemployment numbers are at their lowest level since the start of the pandemic. This positive trend is attributed to the reopening of businesses and increased economic activity.
4. A major breakthrough in renewable energy was announced today, with a new solar panel technology that is more efficient and cost-effective. This innovation is expected to revolutionize the industry and help accelerate the transition to clean energy sources.
5. Lastly, a landmark climate agreement was reached by world leaders at the COP26 summit, with commitments to reduce greenhouse gas emissions and limit global warming to 1.5 degrees Celsius. This agreement is seen as a crucial step in addressing the urgent threat of climate change.
Read more at Nasdaq: Can Disney One-Up Netflix In The Streaming Race?