![]() Do they believe in one's profitability model versus the other? Is it clear where they're honing in on margins, as many of the activist investment campaigns around Disney that have circled it like a shark before kind of stepping back after Bob Iger seemingly put some of those issues to rest at the last earnings call, is it seeming that the investment community is also picking up on that, too?ĪLEXANDRA CANAL: I think they are picking up on that. And with Bob Iger at the helm, that just instills greater confidence in this stock moving forward. So it seems like for analysts, they're leaning more towards Disney than Netflix. And that's really attractive for both investors and analysts alike. So there's a lot of other things to work with here. That is a business that has been very resilient, especially post COVID. We have other components of this business that can help offset some of those streaming risks. It's not a company that is completely reliant on streaming. So that's Netflix.Īnd if you want to switch gears and take a look at the bull case for Disney, that all centers around its diversification. If we take a look at where shares are trading today, they're up about 18% on the year, far outpacing the S&P 500. Wells Fargo analyst Steve Cahall also said that he expects more outperformance in the stock over the efforts surrounding the password sharing crackdown. Those are two big revenue initiatives.Īnd because of those efforts, we saw Bank of America earlier this week named Netflix as one of its top second quarter picks. If we take a look at the bull case for Netflix, that largely centers around its crackdown on password sharing, along with its recently launched ad-supported tier, which did debut in November. That's according to data from FactSet.īut there are bull cases for both companies. And on top of that, Disney also wins out when it comes to potential upside, with analysts seeing a 26% upside for Disney with just about a 4% upside potential for Netflix. Netflix, on the other hand, about 50% of analysts give that stock a buy rating. Disney seems to be the winner, with about 80% of analysts who cover Disney giving that stock a buy rating. ![]() Now, from an analyst rating perspective, they seem to be bullish on both stocks. But at the same time, they're going through this media reckoning that we've seen across the landscape when it comes to high costs and profitability issues. Allie?ĪLEXANDRA CANAL: Yeah, it's always interesting to see Netflix and Disney paired against each other because they are very different companies. So which name does Wall Street think will come out on top despite it all? Yahoo Finance's Alexandra Canal has all the answers for us.
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