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.
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Is Netflix Stock a Buy?
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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Netflix Current Performance
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Stock price: $1,212.50
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Market cap: $515.61 billion
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52-week high: $1,211.77
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52-week low: $587.04
Netflix Stock Past Performance
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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.
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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.
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Netflix went into the next year with over 230 million paying users, an increase of 11 million from the previous year.
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In the past three years, however, Netflix stock has skyrocketed. As of 2025, it has climbed 481% since the same time in 2022.
Is Disney Stock a Buy?
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.
Disney’s valuation metrics suggest it may be undervalued, especially for value investors, as Disney’s forward P/E ratio is more attractive than Netflix’s. Its financial health and growth prospects indicate potential market outperformance thanks to a bundling strategy with Hulu and ESPN as well as owning iconic brands like Marvel, Star Wars and Pixar, to name a few.
Some investors still show concern over streaming losses and profitability but recent quarters have shown improvements. Disney’s traditional television business faces challenges from cable cord-cutting, which is hitting its revenue hard, but pivoting to the Disney+ platform focus could be the best move in the long run.
Disney Current Performance
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Stock price: $112.20
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Market cap: $201.99 billion
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52-week high: $118.63
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52-week low: $80.10
Disney Stock Past Performance
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Despite the success of Disney+, Disney’s streaming business remained unprofitable in 2022, losing around $4 billion. In contrast, the company’s Parks, Experiences, and Products (PEP) unit generated $7.9 billion in operating profit.
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In 2023, Disney announced plans to cut its workforce by 7,000 and reduce overhead by $5.5 billion, including $3 billion from its content arm.
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While Disney was been criticized over the last few years for supporting its streaming service with profits from its parks, experiences, and products, this diversity of profit streams is actually good news for investors in 2025.
Final Take To GO: The Long-Term Bet
Overall, Disney appears to be the more stable choice for the long term. The company’s diverse revenue streams, including its profitable parks and merchandise segments, provide a cushion against the volatility of the streaming market.
Disney’s ability to integrate its content across various platforms and experiences further strengthens its position. Netflix, while innovative and growing, is more reliant on its subscriber base for revenue, and new ad-supported streaming options have been a growth driver.
Ultimately, for investors looking for a more balanced and resilient investment, Disney’s diversified business model and extensive portfolio of beloved characters make it a compelling option. Netflix, with its focus on streaming and emerging ventures, may offer growth potential but comes with higher risks and costs.
Editor’s note: Stock information is sourced via MarketWatch and is accurate as of May 28, 2025.
Rebecca Neubauer contributed to the reporting for this article.
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This article originally appeared on GOBankingRates.com: Netflix vs. Disney Stock: Which Is The Better Investment?
