Disney+ (DIS, $130.23) willing to forgo billions to compete with Netflix (NFLX, $362.51)
Walt Disney revealed the details of its much-anticipated Disney+ streaming service at its investor day. Disney disclosed that its plans to spend $2 billion on the content of its much-anticipated Disney+ streaming service next year out of which about $500 million will be in cash.
It is evident from the modest subscription of only $6.99 per month that Disney is looking at scaling its services at an accelerated pace. The company expects to reach 60 million to 90 million subscribers by the end of fiscal 2024, with Hulu and ESPN+ following close behind.
The company plans to buy back streaming rights from Netflix, especially its films and kids series. Even though foregone licensing revenue will result in a $150 million decrease in operating income this year, the company will be soon able to recuperate the losses as more of its content comes off Netflix.
The company also has the advantage of adjusting some of its ledgers to show a credit for the movie studios and media networks. This means that its estimate of paying around $1.5 million to $2 billion in licensing fees next year need to not be in cash. This ability to license content from itself gives it a far greater advantage over other streaming services like Netflix. With reduced pressure on cash flow, it is expected that Disney would be able to cover its marketing and licensing costs much sooner than 2024.
Overall, it looks like Disney+ will be breaking even if not profitable by 2024, despite about $4.5 billion in content expenses.
DIS's RSI Oscillator ascends from oversold territory
The RSI Oscillator for DIS moved out of oversold territory on August 12, 2025. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 37 similar instances when the indicator left oversold territory. In of the 37 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on August 20, 2025. You may want to consider a long position or call options on DIS as a result. In of 79 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for DIS just turned positive on August 20, 2025. Looking at past instances where DIS's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DIS advanced for three days, in of 281 cases, the price rose further within the following month. The odds of a continued upward trend are .
DIS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 53 cases where DIS's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
DIS moved below its 50-day moving average on August 05, 2025 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for DIS crossed bearishly below the 50-day moving average on August 07, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DIS declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for DIS entered a downward trend on August 12, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. DIS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.950) is normal, around the industry mean (17.246). P/E Ratio (18.555) is within average values for comparable stocks, (79.107). Projected Growth (PEG Ratio) (0.932) is also within normal values, averaging (5.907). Dividend Yield (0.008) settles around the average of (0.037) among similar stocks. P/S Ratio (2.271) is also within normal values, averaging (34.044).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. DIS’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock worse than average.
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General Information
an operator of amusement parks, hotels, television stations and radio broadcasting stations
Industry MoviesEntertainment
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