Caitlyn Moorhead

Thu, May 29, 2025, 10:03 AM4 min read

Netflix (NFLX) and Walt Disney (DIS) have both experienced significant fluctuations in their stock prices over the last few years. This turbulence is largely due to high inflation rates and the challenges of a maturing streaming industry.

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However, both companies have made notable changes recently, making them potential smart investments. Before you decide where to invest, it’s a good idea to delve into which might be the better choice for both your short-term and long-term financial goals.

As one of the original names in the streaming service game, Netflix has continuously shown impressive growth. It has over 300 million subscribers and is not giving any indication of slowing down.

Many stockbrokers and analysts consider the stock moderately bullish. Moreover, the company has developed durable competitive advantages to establish dominance and operate at a high level over other streamers, which may or may not discourage shareholders from selling for a profit.

Much to the chagrin of loyal Netflix customers, its ad-supported tier is a new growth driver and offers potential for increased profitability. Its proven business model still makes it an industry leader for streaming surfaces.

However, its high valuation and P/E ratio suggest a premium valuation, potentially limiting further upside. Netflix’s heavy investment in content production can impact its profitability if it doesn’t generate sufficient returns, making its content costs outweigh its profitability.

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• Stock price: $1,212.50

• Market cap: $515.61 billion

• 52-week high: $1,211.77

• 52-week low: $587.04

• In late 2021, Netflix, in an attempt to diversify and expand, ventured into video games, offering mobile games based on its shows like Stranger Things. Netflix is also moved into cloud gaming, where users can play games on their TVs using their phone as a controller.

• 2022 was rocky for Netflix after losing subscription video-on-demand (SVOD) subscribers for the first time in more than ten years, with nearly a million more customers leaving by 2023.

• Netflix went into the next year with over 230 million paying users, an increase of 11 million from the previous year.

• In the past three years, however, Netflix stock has skyrocketed. As of 2025, it has climbed 481% since the same time in 2022.

The current Wall Street consensus has Disney stock (DIS) considered to be a “Moderate Buy.” This is supported by analysts who have a Buy rating for the stock, with a few holding it, and none recommending a sell. This is in large part due to Disney’s diverse business model, which includes theme parks, resorts, movies, merchandise and, of course, streaming.