Wall Street is split on two of the biggest names in entertainment, Disney stock (DIS) and Netflix stock (NFLX), as both companies chart very different paths through a rapidly changing media landscape.
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Netflix is basking in the glow of another solid earnings beat, while Disney is still trying to regain its footing after years of strategic misfires. Yet despite the performance gap, analysts say the story isn’t so black and white.
Netflix Delivers Hits, But the Valuation’s Already in Reruns
Netflix stock is up over 40% year to date, with its Q2 earnings report showing 16% revenue growth to $11.08 billion, driven by strong subscriber growth and international expansion. Net income surged 46%, and the company is squeezing more from its ad-supported tier.
But analysts say this might be the part of the movie where things slow down.
JPMorgan noted Netflix’s quarter was “solid,” but the stock “needs a breather,” citing valuation concerns after the recent run. Netflix is now trading at more than 44x forward earnings, a premium that only works if subscriber and ad revenue growth continue accelerating. Morgan Stanley still calls it a “Top Pick” but with an eye on margin expansion from live sports and international content. It seems like their execution remains sharp, but expectations are sky-high.
Data from TipRanks shows a “Moderate Buy” rating on Netflix stock, based on 38 analyst reviews over the past three months. The breakdown includes 26 Buys, 11 Holds, and just one Sell. The average 12-month NFLX price target stands at $1,391.88, implying about 18% upside from where shares currently sit.
Disney Stock Trades on Value
Disney stock, on the other hand, isn’t moving as fast, but analysts say it’s quietly turning into a value play. The company still has major assets: ESPN, theme parks, and Marvel’s film pipeline, even if some recent releases disappointed.
Streaming is still bleeding, but analysts at TD Cowen and Evercore see potential in new bundling strategies and a sharper focus on profitability. With Disney trading at a forward P/E around 15, some investors see the stock as undervalued compared to Netflix.
Data from TipRanks shows a “Strong Buy” rating on Disney from Wall Street, with an average 12-month DIS price target of $134, implying around 9.7% upside. That’s not blockbuster territory, but it’s a different kind of play, one built on stability, not just subscriber hype.
Analysts Say the Choice Depends on What You’re Watching For
For investors looking for clean earnings beats, margin expansion and category leadership, Netflix stock remains a top contender. Its content engine is running hot, and it’s already proven it can scale ads and global distribution. But the stock is priced for perfection and any stumble could see that multiple compress fast.
Disney stock, meanwhile, may offer more resilience. Analysts say it has room to rerate higher if its streaming division turns around, and its other businesses offer cash flow that pure-play streamers can’t match. It’s less exciting, but also less exposed to a single revenue driver.
Investors can compare various metrics for both stocks side-by-side on the TipRanks Stocks Comparison tool. Click on the image below to find out more.
