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Indra Bhattacharjee's Avatar
published in Blogs
Apr 26, 2019

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.

Related Ticker: WBD

WBD in -5.13% downward trend, falling for three consecutive days on May 25, 2023

Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where WBD declined for three days, in of 298 cases, the price declined further within the following month. The odds of a continued downward trend are .

Price Prediction Chart

Technical Analysis (Indicators)

Bearish Trend Analysis

The Momentum Indicator moved below the 0 level on May 19, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on WBD as a result. In of 95 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .

The Moving Average Convergence Divergence Histogram (MACD) for WBD turned negative on May 16, 2023. 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 40 similar instances when the indicator turned negative. In of the 40 cases the stock turned lower in the days that followed. This puts the odds of success at .

The Aroon Indicator for WBD entered a downward trend on May 30, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Bullish Trend Analysis

The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where WBD's RSI Indicator exited the oversold zone, of 43 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .

The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 5 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where WBD advanced for three days, in of 304 cases, the price rose further within the following month. The odds of a continued upward trend are .

WBD may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.

Fundamental Analysis (Ratings)

Fear & Greed

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 (0.592) is normal, around the industry mean (4.224). P/E Ratio (7.220) is within average values for comparable stocks, (71.973). Projected Growth (PEG Ratio) (1.649) is also within normal values, averaging (2.658). WBD has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.057). P/S Ratio (0.656) is also within normal values, averaging (111.509).

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 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 89, placing this stock worse than average.

Notable companies

The most notable companies in this group are Netflix (NASDAQ:NFLX), Walt Disney Company (The) (NYSE:DIS), Paramount Global (NASDAQ:PARA), Roku (NASDAQ:ROKU), iQIYI (NASDAQ:IQ), AMC Entertainment Holdings (NYSE:AMC), HUYA (NYSE:HUYA).

Industry description

Movies/entertainment industry include companies that produce and distribute motion pictures, and companies that operate general entertainment facilities like amusement parks and bowling centers. Some companies in this industry also have professional sports franchises. Live Nation Entertainment, Inc., Liberty Media Corp. and Viacom Inc. are some of the biggest companies in this space.

Market Cap

The average market capitalization across the Movies/Entertainment Industry is 6.61B. The market cap for tickers in the group ranges from 134 to 174.7B. NFLX holds the highest valuation in this group at 174.7B. The lowest valued company is LRDG at 134.

High and low price notable news

The average weekly price growth across all stocks in the Movies/Entertainment Industry was -3%. For the same Industry, the average monthly price growth was -10%, and the average quarterly price growth was 10%. UMGP experienced the highest price growth at 31%, while DTTVY experienced the biggest fall at -50%.

Volume

The average weekly volume growth across all stocks in the Movies/Entertainment Industry was 10%. For the same stocks of the Industry, the average monthly volume growth was 16% and the average quarterly volume growth was -51%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 51
P/E Growth Rating: 63
Price Growth Rating: 55
SMR Rating: 85
Profit Risk Rating: 89
Seasonality Score: 18 (-100 ... +100)
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Technical Analysis# Of IndicatorsAvg. Odds
   
   
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A.I.Advisor
published price charts
A.I. Advisor
published General Information

General Information

a provider of multi-media educational and entertainment programming services

Industry MoviesEntertainment

Profile
Fundamentals
Details
Industry
Cable Or Satellite TV
Address
230 Park Avenue South
Phone
+1 212 548-5555
Employees
37500
Web
https://corporate.discovery.com
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WBD and

Correlation & Price change

A.I.dvisor indicates that over the last year, WBD has been loosely correlated with PARAA. These tickers have moved in lockstep 64% of the time. This A.I.-generated data suggests there is some statistical probability that if WBD jumps, then PARAA could also see price increases.

1D
1W
1M
1Q
6M
1Y
5Y
Ticker /
NAME
Correlation
To WBD
1D Price
Change %
WBD100%
-1.22%
PARAA - WBD
64%
Loosely correlated
+5.22%
AMCX - WBD
64%
Loosely correlated
-2.64%
PARA - WBD
64%
Loosely correlated
+6.37%
PARAP - WBD
63%
Loosely correlated
+6.14%
FOX - WBD
59%
Loosely correlated
+0.14%
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