Disney+ (DIS, $139.63) gears up to give Netflix (NFLX, $372.57) stiff competition
Shares of Walt Disney have risen by ~15% since the company’s announcement of its new $6.99 per-month Disney+ streaming service starting later this year. The company plans to stream family-friendly content and will be undercutting the price of the standard Netflix charges by nearly 50%.
This strategy, according to many analysts, could hit Netflix with stiff competition as it has thus far enjoyed a near monopoly in the online streaming space.
A random survey of 602 current Netflix subscribers reveals that 14.5% of the current users are willing to switch to Disney+. That means Netflix may lose 9 million customers by the end of the year, accounting for a loss of $116.9 million in revenue on a monthly basis.
However, this is not the first time that Netflix has been threatened with loss of subscriptions. In 2017, about 20% of subscribers considered dropping subscriptions when Disney pulled its content from the platform. The threat was, however, not followed through.
But with the actual launch of an alternative service, if 2.2% of the survey respondents confirm that they’d be definitely cancelling their Netflix subscriptions, it would mean a loss of 1.3 million users for the streaming giant.
Additionally, 20% of the respondents say that they stay on both the platforms giving Disney a chance to win over Netflix customers with a more affordable service. Further, Disney’s family-friendly content could be another reason why families with children may prefer Disney+ to Netflix.
WBD in upward trend: price may jump up because it broke its lower Bollinger Band on October 02, 2024
WBD may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 45 cases where WBD's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 67 cases where WBD's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on October 25, 2024. You may want to consider a long position or call options on WBD as a result. In of 99 past instances where the momentum indicator moved above 0, the stock continued to climb. 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 WBD advanced for three days, in of 296 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for WBD turned negative on October 02, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
WBD moved below its 50-day moving average on October 21, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for WBD crossed bearishly below the 50-day moving average on October 15, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 17 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 WBD 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 WBD entered a downward trend on October 28, 2024. 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 Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. WBD’s price grows at a lower 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 slightly overvalued 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 (0.474) is normal, around the industry mean (5.952). P/E Ratio (7.220) is within average values for comparable stocks, (90.982). Projected Growth (PEG Ratio) (4.750) is also within normal values, averaging (2.987). Dividend Yield (0.000) settles around the average of (0.039) among similar stocks. P/S Ratio (0.518) is also within normal values, averaging (30.667).
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 SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable 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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. WBD’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 86, placing this stock worse than average.
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a provider of multi-media educational and entertainment programming services
Industry MoviesEntertainment