The Walt Disney Company operates as an entertainment company worldwide. It operates through three segments: Entertainment, Sports, and Experiences. The company produces and distributes film and television video streaming content under the ABC Television Network, Disney, Freeform, FX, Fox, National Geographic, and Star brand television channels, as well as ABC television stations and A+E television networks; and produces original content under the ABC Signature, Disney Branded Television, FX Productions, Lucasfilm, Marvel, National Geographic Studios, Pixar, Searchlight Pictures, Twentieth Century Studios, 20th Television, and Walt Disney Pictures banners. It also offers direct-to-consumer streaming services through Disney+, Disney+ Hotstar, Hulu, and Star+; sports-related entertainment services through ESPN, ESPN on ABC, ESPN+ DTC, and Star; sale/licensing of film and episodic content to third-party television and VOD services; theatrical, home entertainment, and music distribution services; DVD and Blu-ray discs, electronic home video licenses, and VOD rental services; staging and licensing of live entertainment events; and post-production services. In addition, the company operates theme parks and resorts comprising Walt Disney World Resort, Disneyland Resort, Disneyland Paris, Hong Kong Disneyland Resort, Shanghai Disney Resort, Disney Cruise Line, Disney Vacation Club, National Geographic Expeditions, and Adventures by Disney, as well as Aulani, a Disney resort and spa in Hawaii. It also licenses its intellectual property to a third party for operations of the Tokyo Disney Resort; licenses trade names, characters, visual, literary, and other IP for use on merchandise, published materials, and games; operates a direct-to-home satellite distribution platform; sells branded merchandise through retail, online, and wholesale businesses; and develops and publishes books, comic books, and magazines. The company was founded in 1923 and is based in Burbank, California.

Walt Disney Company (The)

Netflix NFLX shares tumbled 12% following the streaming giant's third-quarter 2025 earnings release, as a one-time Brazilian tax charge overshadowed otherwise solid operational results. The stock decline reflects investor sensitivity to profitability metrics despite the company's sustained revenue momentum and strategic progress in key growth areas, including advertising and live programming.
Q3 Earnings Miss Masks Underlying Strength
NFLX reported third-quarter revenues of $11.51 billion, representing 17% year-over-year growth, which missed the consensus mark by 0.12%. Earnings per share of $5.87 fell significantly short of the consensus mark by 14.8%, primarily due to a $619 million charge related to a Brazilian Supreme Court ruling on technology transfer taxes. Management emphasized that, in the absence of this expense, operating margins would have exceeded the 31.5% forecast, reaching approximately 33%. The charge covers periods from 2022 through the third quarter of 2025, with only 20% attributable to the current year. Importantly, executives stated this matter should not materially impact future results, suggesting the earnings miss represents an accounting adjustment rather than fundamental business deterioration.
The company maintained its full-year 2025 revenue guidance of $45.1 billion, indicating 16% annual growth, though it lowered operating margin expectations to 29% from 30% due to the tax matter. Revenue growth accelerated across all regions, with the United States and Canada posting 17% gains as pricing changes implemented in January took full effect. Netflix raised subscription prices across all tiers at the start of 2025, with the ad-supported plan increasing to $7.99 monthly, the standard plan to $17.99, and the premium tier to $24.99.
The Zacks Consensus Estimate for 2025 revenues is pegged at $45.09 billion, indicating 15.61% year-over-year growth. The consensus mark for earnings is pegged at $25.43 per share, indicating a 28.24% increase from the previous year.
Netflix, Inc. Price and Consensus
Advertising Momentum and Live Content Strategy
A significant bright spot in the quarter was the advertising business, which recorded its best quarter to date and remains on track to more than double revenues in 2025 from a relatively small base. The ad-supported tier now boasts 94 million monthly active users globally, with U.S. members averaging 41 hours of monthly engagement. Management indicated that upfront advertising commitments more than doubled. The company has invested heavily in building its proprietary ad technology platform, partnering with major programmatic players, including The Trade Desk, Google DV360, and Magnite to expand reach and targeting capabilities.
Netflix's expansion into live programming represents another strategic pillar for future growth. The platform successfully launched WWE Monday Night Raw in January 2025 under a 10-year, $10 billion deal, delivering consistent weekly programming. Two NFL Christmas Day games are scheduled for December 2025, featuring competitive matchups, including the Kansas City Chiefs versus the Pittsburgh Steelers. The company has also streamed high-profile boxing events, with the Jake Paul-Mike Tyson fight attracting 108 million global viewers despite technical challenges. These live events drive advertising revenues and reduce subscriber churn while attracting younger demographics.
Technology and Content Innovation Aids Prospects
The streaming leader is aggressively pursuing artificial intelligence integration across its platform. Management confirmed the company is using generative AI for content production, with the Argentine series The Eternaut featuring AI-generated visual effects that reduced production time and costs by a factor of ten. AI applications extend to personalized recommendations, which drive approximately 80% of viewing, dynamic advertising formats, and content discovery features, including a ChatGPT-powered search tool piloted in select markets. Netflix released production guidance for creators to ensure responsible AI implementation while maintaining creative quality standards.
The fourth-quarter content slate includes highly anticipated titles led by the first volume of Stranger Things' fifth and final season launching Nov. 26. Guillermo del Toro's Frankenstein adaptation and Rian Johnson's Wake Up Dead Man: A Knives Out Mystery anchor the film lineup. The series finale of Stranger Things will receive a simultaneous theatrical and streaming release on New Year's Eve, marking a strategic shift toward limited theatrical distribution for select premium content.
Share Price Movement, Valuation, and Competitive Landscape
Netflix shares declined from approximately $1,240 before third-quarter earnings to roughly $1,095, erasing gains accumulated through the summer months when the stock peaked near $1,341 in June. The 12% post-earnings drop reduced year-to-date gains to approximately 25%, though the stock remains up significantly on a trailing 12-month basis.
NFLX’s Share-Price Movement
Image Source: Zacks Investment Research
At current levels, Netflix trades at a forward price-to-earnings ratio of 35.46 times, reflecting expectations for earnings growth to justify the premium multiple relative to the broader Zacks Broadcast Radio and Television industry's average of 28.53 times. Netflix maintains advantages in scale, with more than 247 million global subscribers and market-leading engagement metrics, but must continue executing on content differentiation, advertising growth, and live programming to justify its valuation premium.
NFLX’s P/E F12M Ratio Depicts Stretched Valuation
Image Source: Zacks Investment Research
The competitive landscape has intensified as rivals Amazon AMZN, Disney DIS and Apple AAPL, among others, invest heavily in content and technology. Amazon Prime Video continues expanding its sports programming portfolio, securing exclusive NFL Thursday Night Football rights and adding NBA games to complement its extensive content library, while Amazon Prime Video leverages its parent company's retail ecosystem for commerce integration and Amazon Prime Video recently unveiled AI-powered content discovery features similar to Netflix's initiatives. Disney+ has grown its ad-supported subscriber base by 65% year over year, with 90% of Hulu's 50 million subscribers choosing ad-supported plans, demonstrating Disney's success in the advertising space that Netflix is targeting, and Disney+ benefits from its unmatched portfolio of franchises, including Marvel, Star Wars, and Pixar properties that provide built-in audience loyalty. Apple TV+ pursues a quality-over-quantity strategy with critically acclaimed series, including the upcoming Pluribus from Breaking Bad creator Vince Gilligan and Severance's highly anticipated second season, while Apple TV+ leverages its hardware ecosystem to bundle services, and Apple TV+ focuses on premium storytelling that garners awards recognition.
Investment Outlook and Recommendation
For investors, Netflix presents a nuanced picture. Existing shareholders should maintain positions as the fundamental business remains healthy with multiple growth drivers intact. The advertising business trajectory, live programming expansion, international growth, and technological innovation provide confidence in Netflix's ability to sustain mid-teens revenue growth. However, prospective investors may benefit from patience, waiting for greater clarity on 2026 financial targets and evidence that the advertising business can maintain momentum beyond the initial scaling phase. A more attractive entry point could emerge in early 2026 once full-year guidance provides better visibility into sustainable profitability trends. NFLX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See "2nd Wave" AI stocks now >>
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Netflix Plunges 12% Post Q3 Earnings: Buy, Sell or Hold the Stock?

Key Points
"KPop Demon Hunters" has become Netflix's most viewed movie ever.
The company is teaming up with Mattel and Hasbro to launch multiple lines of toys from the movie.
Netflix could have more ways to monetize the viral sensation.
Netflix (NASDAQ: NFLX) has come to dominate the video entertainment industry, with more than 300 million global subscribers.
However, there's still room for growth and new opportunities for the company. It has long had ambitions of building more of a flywheel-style business model like Walt Disney, which has been able to capitalize on its popular movie franchises and monetize them through its theme parks, consumer products, and live entertainment.
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Netflix has experimented with this, selling some products from series like Stranger Things and experiences inspired by Bridgerton. But it now has its biggest opportunity ever to expand beyond video entertainment with KPop Demon Hunters, the viral children's animated movie. KPop Demon Hunters has become the most-watched movie ever on the Netflix platform, with 325 million views as of its earnings report.
Netflix makes a move for the toy biz
The movie has been a viral sensation for kids and is likely to be a popular choice for Halloween costumes. The buzz is well-timed ahead of the holiday season.
Netflix is trying to take full advantage of the interest in the movie and a soundtrack. It's teaming with Hasbro and Mattel to produce toys, collectibles, games, and other products based on the movie, which features a female K-pop trio that also fights demons.
Mattel will develop a line of products based on the movie that includes dolls, action figures, accessories, and other products. Hasbro, meanwhile, will produce plush toys, electronics, and role-play items, and a KPop Demon Hunters version of Monopoly Deal, a card game.
Mattel stock rose on the news, as the tie-up could be a bigger deal for that company than for Netflix. Mattel is much smaller than Netflix, with a market cap of just $6 billion.
What it means for Netflix
The toy partnership is likely to be Netflix's biggest cash grab in consumer products yet, and it could pave the way to more spin-offs for KPop Demon Hunters. An obvious one would be a live concert tour of songs from the movie. The music has been key to its popularity, and like Disney's animated musicals, is likely to become part of the popular zeitgeist.
For Disney, movies like Frozen have had incredible staying power, continuing to make new fans who were born years after the debut. The same could be true for KPop Demon Hunters, and a sequel could also be in its future.
Whatever happens, investors shouldn't underestimate the potential effect on Netflix's bottom line. The experience is likely to teach it some valuable lessons in building the kind of entertainment empire that Disney has created.
Should you invest $1,000 in Netflix right now?
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Jeremy Bowman has positions in Netflix and Walt Disney. The Motley Fool has positions in and recommends Netflix and Walt Disney. The Motley Fool recommends Hasbro. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Netflix's Move From Screen to Shelf Could Be a Genius Diversification Play

Key Points
AI stocks and related technology names are arguably overvalued.
Despite Netflix's recently reported results that fell short of estimates, the streaming giant's long-term potential remains tremendous.
Netflix shares' recent weak performance translates into a compelling opportunity to step into this potential at a great entry price.
There's no denying artificial intelligence (AI)-related stocks are the market's darlings right now. And understandably so. Their underlying companies are just creating too much positive change for this not to be the case.
The only problem? All the talk about artificial intelligence stocks being in a valuation bubble holds a little too much water. There's good reason to be concerned.
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The fact of the matter is, however, most stocks -- even most growth stocks -- aren't artificial intelligence stocks. Plenty of these names are still worth stepping into at their current prices, too. And one of the best prospects among these tickers is streaming giant Netflix (NASDAQ: NFLX).
Netflix, up close and personal
Surprised? Maybe even a little confused? It would be a bit surprising if you weren't. Although it's the obvious powerhouse of the streaming industry, the industry itself is running out of prospective subscribers. Netflix is no exception to this reality, something reflected in its recent subpar performance.
Except, simply adding more paying subscribers isn't the key to this company's growth anymore.
But first things first.
As of the latest tally, $528 billion Netflix is doing about $42 billion worth of business per year, roughly $10 billion of which is being turned into income. That translates into a relatively frothy valuation of around 50 times earnings, but that's not unusual given the company's current growth rates. Last quarter's revenue improved by a little more than 17% year over year, pushing profits up from $5.40 per share to $5.87, for perspective, extending and even accelerating existing trends.
We don't know how many paying customers the company now has, since Netflix stopped disclosing that data as of the beginning of this year. However, as of the end of last year the company boasted 301.6 million members. It's likely added at least a few -- but only a few -- more million subscribers in the meantime; most anyone who wants a particular streaming service already has it.
Underscoring the prospect of slowing growth is last quarter's top line of $11.5 billion, which fell just short of analysts' estimates. Meanwhile, earnings missed consensus estimates of $6.97 per share by a pretty wide margin thanks to soaring content and marketing costs. Rattled investors sent Netflix stock careening on Wednesday in response.
The market's mostly overlooking something about Netflix though, and for that matter, its place within the streaming industry.
A standout with staying power
Yes, in some regards Netflix confirmed current and would-be shareholders' worst fears -- it is getting more expensive to be in this business.
This particular company holds a special place within the streaming industry, however. Not only is it the United States' most-watched subscription-based streaming platform according to Nielsen as well as Pew Research, it arguably invented the streaming industry as we know it. It's doing well enough overseas, too.
It matters simply because it's become the habitual first stop for many consumers. Data from Hub Research indicates that 40% of U.S. television watchers start their viewing search with a streaming service rather than cable, with nearly half of that 40% saying they specifically start this search at Netflix. The next-nearest starting point is a relatively dissimilar YouTube. The third-most popular starting point is Walt Disney's streaming app, although only 5% of consumers actually start there. In a similar vein, for most U.S. households that have access to two or streaming services, it's almost always Netflix and then something else.
Then there's the more subjective argument for owning a stake in Netflix that's the result of its long-lived market leadership. That's the fact that it's become such a well-loved and highly utilized service that it's able to do what rivals arguably can't: trying new things to expand its reach and stickiness.
Case in point: Just last week Netflix announced a deal with Spotify to bring some of the latter's more popular podcasts to Netflix's lineup.
Another example of something Netflix can do differently and better than its competitors is its nascent advertising business. While it's been offering ad-subsidized subscription plans for three years now, the company's still only scratched the surface of the opportunity. As Seaport Research Partners analyst David Joyce wrote earlier this month prior to Tuesday's release of Netflix's Q3 results, "We think advertising could double this year and could grow at 48% annually through 2030 to reach $16 billion." And Wedbush media analyst Alicia Reese agrees, adding, "We expect ad revenue to become Netflix's primary revenue driver beginning in 2026."
Don't overthink what everyone else is
As compelling as this assessment so far might be, it's still not the entirety of the reason to consider committing a few thousand bucks to this stock right now. The rest of the bullish argument for owning a stake in Netflix stock here and now is far more pragmatic. That is, with Wednesday's 10% post-earnings stumble following three months' worth of lethargic performance, this stock is just priced too low to pass up now.
Yes, its third quarter was a disappointment. Keep things in perspective, though. Largely thanks to an advertising business it's still trying to fully figure out, the company still grew its top and bottom lines quite nicely in an economic environment that's not exactly robust.
Both are temporary headwinds, however. Once they're in the rearview mirror, look for this already dominant company to continue leveraging its dominance in a way that inspires investors to ignore its stock's lofty valuation and instead focus on its actual growth potential. Don't overthink it in the meantime.
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James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix, Spotify Technology, and Walt Disney. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Smartest Growth Stock to Buy With $2,000 Right Now

Investors in Walt Disney Co. (Symbol: DIS) saw new options become available today, for the December 5th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DIS options chain for the new December 5th contracts and identified one put and one call contract of particular interest.
The put contract at the $99.00 strike price has a current bid of 65 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $99.00, but will also collect the premium, putting the cost basis of the shares at $98.35 (before broker commissions). To an investor already interested in purchasing shares of DIS, that could represent an attractive alternative to paying $112.82/share today.
Because the $99.00 strike represents an approximate 12% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 83%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 0.66% return on the cash commitment, or 5.57% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Walt Disney Co., and highlighting in green where the $99.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $125.00 strike price has a current bid of 89 cents. If an investor was to purchase shares of DIS stock at the current price level of $112.82/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $125.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 11.58% if the stock gets called away at the December 5th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if DIS shares really soar, which is why looking at the trailing twelve month trading history for Walt Disney Co., as well as studying the business fundamentals becomes important. Below is a chart showing DIS's trailing twelve month trading history, with the $125.00 strike highlighted in red:
Considering the fact that the $125.00 strike represents an approximate 11% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 74%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 0.79% boost of extra return to the investor, or 6.69% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 47%, while the implied volatility in the call contract example is 38%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 250 trading day closing values as well as today's price of $112.82) to be 29%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Also see:
Top Ten Hedge Funds Holding DSKY
CNXC YTD Return
ETN Next Dividend Date
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

December 5th Options Now Available For Walt Disney (DIS)

The entertainment landscape continues to evolve rapidly, with streaming wars intensifying and traditional media companies redefining their models. Two giants leading this transformation are Disney DIS and Warner Bros. Discovery WBD — each commanding global scale, deep content libraries and multi-format distribution networks.
Disney remains a century-old entertainment powerhouse, spanning film studios, television, theme parks and streaming platforms. Warner Bros. Discovery, formed from the 2022 merger between WarnerMedia and Discovery, combines HBO, Warner Bros. Pictures, DC Studios, Discovery Network and CNN into one of the industry’s most diversified content ecosystems. Both companies are recalibrating their strategies around streaming profitability, sustainable growth and IP monetisation amid soft linear trends and high content costs.
Let’s delve deep and closely compare the two stocks to assess their strategic positioning.
The Case for WBD
WBD operates across Studios, Streaming, and Linear Networks, supported by one of the industry’s largest content libraries and global production footprints. Its mix of scripted, unscripted and live programming provides reach across platforms as consumer demand continues to shift toward streaming-first viewing.
The Studios division anchors WBD’s creative ecosystem. The Zacks Consensus Estimate for third-quarter 2025 Studio revenue is pegged at $2.77 billion, up 5.6% year over year, reflecting steady contributions from franchises such as Harry Potter, DC Universe and Dune. The company’s streaming platform, Max, complements this foundation and continues to scale across 77 markets. With a slate combining franchise IP and original storytelling, upcoming titles like Supergirl: Woman of Tomorrow, The Batman II, The Lord of the Rings: The Hunt for Gollum, Clayface and new seasons of The White Lotus and The Last of Us reinforce Max’s premium positioning and engagement depth.
The Global Linear Networks segment — which includes CNN, TNT Sports, Discovery Channel and HGTV- remains a stable cash contributor, though ongoing advertising softness limits growth. Its cash flow continues to support content investments and debt servicing, with leverage still near $30 billion.
However, WBD is entering a complex restructuring phase following its announced separation into two focused entities — Warner Bros. (Studios & Streaming) and Discovery Global Media (Linear Networks) — while exploring a potential sale of select studio assets. These moves aim to simplify operations and unlock value, but could pressure margins as restructuring and divestiture costs weigh on results. The Zacks Consensus Estimate for third-quarter 2025 loss is pegged at 5 cents per share, improving by 3 cents over the past month but marking a 200% decline from earnings of 5 cents a year earlier. The consensus mark for 2025 EPS is pegged at 36 cents, up 3 cents in the past 30days and reflecting a turnaround from a loss of $4.62 per share last year — suggesting gradual recovery potential, though sustained profitability will depend on execution discipline and market conditions over the next few quarters.
Warner Bros. Discovery, Inc. Price and Consensus
The Case for DIS Stock
Disney is progressing through a broad transformation aimed at restoring earnings momentum and strengthening its dual growth engines — streaming and Experiences. The company is pursuing a disciplined approach to cost management, content monetisation and capital efficiency across its Entertainment, Sports and Experiences segments.
The Direct-to-Consumer (DTC) business remains a major growth driver, anchored by Disney+, Hulu and ESPN+. Together, these platforms position Disney as a leader in global streaming, spanning family entertainment, general content and premium sports. The Zacks Consensus Estimate for fourth-quarter 2025 DTC revenue is pegged at $6.3 billion, reflecting 9.01% year-over-year growth, driven by subscriber additions and improved monetisation. The consensus mark for Disney+, Hulu and ESPN+ paid subscribers is pegged at 71.3 million, 60.7 million and 24.5 million, respectively. Broader adoption of ad-supported tiers, rising international engagement, and a steady slate of major releases such as Mufasa: The Lion King, Captain America: Brave New World, Moana 2 and Inside Out 2 are expected to sustain momentum and accelerate the path to streaming profitability.
The Experiences segment, encompassing Parks, Resorts and Cruises, continues to anchor Disney’s earnings. The Zacks Consensus Estimate for fourth-quarter 2025 Experiences revenue is pegged at $8.22 billion, reflecting solid attendance, strong guest spending and healthy bookings. Expansion initiatives, including the upcoming resort and theme park on Yas Island in Abu Dhabi, Disney’s first in the Middle East, highlight its global reach and long-term growth potential.
The Zacks Consensus Estimate for 2025 EPS is pegged at $5.87, unchanged over the past 30 days and representing 18.11% year-over-year growth. Improving DTC margins, consistent performance in Experiences and prudent cost management are expected to support Disney’s earnings recovery and strengthen its long-term investment appeal.
The Walt Disney Company Price and Consensus
Stock Valuation and Price Performance Comparison
Both Disney and Warner Bros. Discovery carry a Value Score of B, suggesting attractive valuations relative to their fundamentals. Disney’s forward P/S of 2.04X is higher than WBD’s 1.33X, reflecting market confidence in its diversified business mix and steadier earnings outlook. While both stocks trade below historical averages, Disney’s broad exposure across streaming, content, sports and experiences offers greater earnings stability and long-term visibility. In contrast, WBD’s heavier reliance on advertising-driven linear networks and its ongoing restructuring efforts create higher cyclicality and execution risk.
DIS vs. WBD: P/S F12M Ratio
Image Source: Zacks Investment Research
WBD’s shares have soared 92.4% year to date, largely outperforming Disney’s modest 2.5% appreciation during the same period. WBD’s rally has been fueled by investor speculation surrounding restructuring and potential asset divestitures, though much of this optimism now appears priced in amid limited earnings visibility. In contrast, Disney’s steadier performance reflects a more fundamental recovery trajectory, supported by improving streaming economics, resilient park operations and upcoming international expansion.
WBD vs DIS YTD Performance
Image Source: Zacks Investment Research
Conclusion
Both Disney and WBD continue to evolve as the media landscape shifts toward streaming-first business models and diversified monetisation. WBD’s content depth and improving streaming performance highlight operational progress, yet its heavy exposure to advertising and ongoing restructuring introduces higher volatility and earnings uncertainty. Disney, in comparison, offers a steadier trajectory supported by improving DTC margins, resilient Parks and Experiences revenue and global expansion plans. With multiple growth drivers still unfolding and balanced cash flow visibility, DIS appears better positioned to deliver sustainable long-term value. Both DIS and WBD currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See "2nd Wave" AI stocks now >>
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Warner Bros. Discovery vs. Disney: Which Media Giant Has an Edge?

Netflix's NFLX latest results underscore how pricing power and advertising momentum are fueling its next phase of growth. Following a strong third quarter, with 17% year-over-year revenue growth, the company forecast fourth-quarter 2025 revenues to rise 16.7% to $11.9 billion, driven by higher memberships, price adjustments and accelerating ad sales. Full-year revenues are expected to be $45.1 billion, suggesting a 16% year-over-year rally.
Advertising has become a key growth engine. Netflix reported its best ad-sales quarter ever, with U.S. upfront commitments more than doubling. Management reaffirmed its goal to double ad revenues in 2025, supported by its expanding ad-supported tier and the rollout of Netflix Ads Suite and Yahoo DSP integration to enhance targeting and measurement. These moves are helping transform ads into a recurring, scalable revenue stream.
Meanwhile, pricing remains a strong profit lever. Strategic hikes across premium and standard tiers in key markets such as the United States and Canada (plans now ranging from $7.99 to $24.99) have boosted average revenue per user (ARPU) and lifted the operating margin to about 28%. The dual approach of offering affordable ad-supported options, while monetizing premium users, has continued to drive revenue growth.
Looking ahead, a robust content slate is expected to sustain engagement. Fourth-quarter 2025 releases include Stranger Things’ final season, The Diplomat, and live events such as the NFL Christmas Day games and Jake Paul vs. Tank Davis fight. In 2026, global hits like Bridgerton and One Piece return, reinforcing Netflix’s content-driven growth.
The Zacks Consensus Estimate for 2025 and 2026 indicates that revenues will grow 15.6% and 12.9%, respectively, on a year-over-year basis.
How Rivals Stack Up Against NFLX in Ad & Pricing Race
The Walt Disney DIS is escalating its rivalry with Netflix by leveraging its AdTech stack across Disney+, Hulu and ESPN+ to enhance ad monetization and pricing flexibility. Disney’s shift toward ad-supported tiers boosts revenues but exposes limits in pricing power, with Disney+ ARPU stagnating around $8. Despite a strong park performance and bundling advantages, Disney faces mounting content costs that strain long-term profitability, underscoring the delicate balance between competitive pricing and sustainable growth.
Amazon AMZN is intensifying its battle with Netflix by unifying Prime Video and retail data into a powerful advertising ecosystem. With more than 130 million U.S. ad-supported viewers, Amazon leverages its massive Prime base to boost ad revenues and drive upgrades to higher-priced tiers. Projected to exceed $60 billion in 2025 retail media sales, Amazon’s data-driven targeting and integrated pricing model give it a dominant edge in streaming monetization and competitive pricing efficiency.
NFLX’s Price Performance, Valuation & Estimates
Shares of Netflix have gained 32% year to date compared with the Zacks Broadcast Radio and Television industry’s rise of 33% and the Zacks Consumer Discretionary sector’s return of 9.2%.
NFLX’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Netflix appears overvalued, trading at a forward 12-month price-to-earnings ratio of 39.95, higher than the industry's 31.05X. NFLX has a Value Score of D.
NFLX’s Valuation
Image Source: Zacks Investment Research
The consensus mark for 2025 earnings is pegged at $26.10 per share, up by a cent over the past 30 days. This indicates a 31.62% increase from the previous year's actual.
Image Source: Zacks Investment Research
NFLX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
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Pricing & Ad Momentum Lift Netflix's Q4 View: Is Upside Sustainable?

Netflix NFLX reported third-quarter 2025 earnings of $5.87 per share, which missed the Zacks Consensus Estimate by 14.8%. The shortfall was primarily attributed to a one-time $619 million expense related to an ongoing dispute with Brazilian tax authorities. The figure increased 8.7% from the year-ago quarter's $5.40 per share.
Netflix shares fell approximately 5-7% in after-hours trading following the earnings release, primarily due to the significant earnings per share miss. Despite the after-hours decline, Netflix has gained more than 48.6% over the past year, reflecting the company's strong operational performance, successful content strategy, and expanding advertising business.
Revenues increased 17.2% year over year (17% on a foreign exchange neutral basis), driven primarily by membership growth, higher subscription pricing, and increased advertising revenues. The figure missed the consensus mark by 0.12%.
The company emphasized that, absent the Brazilian tax expense, it would have exceeded its third-quarter operating margin forecast. Netflix stated that it does not expect this matter to have a material impact on future results. The Brazilian tax involves a 10% levy on certain payments made by Brazilian entities to operations outside the country.
Netflix moved away from reporting specific subscriber count, starting with the first quarter of 2025, preferring instead to focus on financial metrics and user engagement. While tech giants like Apple AAPL and Amazon AMZN do not reveal subscriber figures for their respective streaming services, other media companies do. Disney DIS separately breaks out Disney+, Hulu and ESPN+ figures.
Netflix, Inc. Price, Consensus and EPS Surprise
Record Engagement Fuels Growth Despite Operating Margin Miss
Despite the earnings miss, Netflix delivered a strong operational performance in the third quarter. The company achieved its highest quarterly viewing share ever in both the United States and the United Kingdom, with total viewing hours growing faster in the third quarter than in the first half of 2025.
All regions experienced healthy year-over-year revenue growth. UCAN (United States and Canada) revenue increased 17% year over year to approximately $5.07 billion, EMEA (Europe, Middle East and Africa) grew 18% to $3.7 billion, Latin America rose 10% to $1.37 billion, and Asia-Pacific surged 21% to $1.37 billion.
Operating income totaled $3.25 billion, up 12% year over year, but operating margin came in at 28%, significantly below the company's guidance of 31.5% due to the Brazilian tax dispute. Without this one-time expense, Netflix indicated that it would have exceeded its operating margin forecast.
Marketing expenses increased 22.3% year over year to $786.3 million. As a percentage of revenues, marketing expenses expanded 30 basis points (bps) on a year-over-year basis to 6.8%. Technology and development expenses increased 16.1% year over year to $853.6 million. As a percentage of revenues, technology and development expenses contracted 10 basis points (bps) on a year-over-year basis to 7.4%. General and administration expenses increased 9.7% year over year to $457.9 million. As a percentage of revenues, general and administration expenses contracted 30 bps on a year-over-year basis to 4%.
KPop Demon Hunters Becomes Cultural Phenomenon
The third quarter was dominated by the unprecedented success of the animated musical film KPop Demon Hunters, which has become Netflix's most-watched film of all time with more than 325 million views. The film, which premiered on June 20, 2025, has remained on Netflix's Global Top 10 list for 15 consecutive weeks through the third quarter, an unprecedented run for any title on the platform.
The film's impact extended beyond streaming, with a limited theatrical sing-along event in late August generating $17-$18 million in a single weekend across the United States, Canada, Australia, New Zealand, and the United Kingdom. The sing-along version was subsequently released on the platform on Aug. 25, further boosting viewership.
In an unprecedented cultural crossover, HUNTR/X, the fictional K-pop girl group at the center of KPop Demon Hunters, saw their single "Golden" reach No. 1 on the Billboard Hot 100 chart, marking a significant milestone. The film's success prompted Netflix to announce dual product partnerships with leading toy companies Hasbro and Mattel, with dolls, plush, roleplay items, and themed games slated for retail release in spring 2026.
Strong Second-Half Content Slate Drives Viewership
Netflix delivered a robust content slate in the third quarter, led by the highly anticipated return of Wednesday Season 2, which premiered on Aug. 6 with 13.4 million views in its first week. Part 2 of the season was released on Sept. 3. The series has accumulated 107 million views to date, placing it at No. 7 on Netflix's all-time list for English-language TV shows, though it still trails the first season's record-breaking 252.1 million views.
Other successful third-quarter releases included the cooking competition series Bon Appétit, the South Korean drama Your Majesty, and Happy Gilmore 2 starring Adam Sandler, which generated 14.7 million views and delighted audiences with the return of the beloved comedy character.
International content continued to perform strongly, with the British political thriller Hostage starring Julie Delpy and Corey Mylchreest generating 10.8 million views. The romantic drama My Oxford Year, also starring Mylchreest alongside Sofia Carson, attracted 5.9 million views.
Live Programming Achieves Major Milestone
This Zacks Rank #3 (Hold) company scored a significant success in live programming with the broadcast of the Canelo vs. Crawford boxing match on Sept. 13, which topped the weekly TV list with 17.7 million views. The fight scored an estimated average minute audience of 36.6 million global viewers, making it the most-viewed men's championship boxing match of the 21st century. The event marked another win for Netflix's expansion into live sports programming. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Advertising Business Surges to Record Heights
Netflix recorded its best advertising sales quarter ever in the third quarter, with the company on track to more than double ad revenues in 2025, albeit from a relatively small base. The company doubled its upfront commitments in the United States during the quarter.
Co-CEO Greg Peters highlighted the company's progress in advertising technology, noting that in the fourth quarter, Netflix is using AI to test new ad formats "to generate the most relevant ad creative and placement for members, and for faster development of media plans." The company stated that these advancements will enable it to test, iterate, and innovate on dozens of ad formats by 2026.
Netflix also announced a partnership with Spotify to bring a select number of podcasts from Spotify Studios and The Ringer to Netflix's platform, further expanding its content offerings.
Netflix Declares All In on AI Integration
Netflix declared itself "all in" on leveraging generative AI across its streaming platform during the third-quarter earnings discussion. The company emphasized that machine learning and AI have been powering title recommendations, production, and promotion technology for years, with generative AI presenting a significant opportunity across recommendations, advertising, and content creation. Earlier in 2025, Netflix used generative AI for the first time in final footage in the Argentine series The Eternaut, completing a building collapse sequence 10 times faster than traditional visual effects methods would have allowed.
Netflix provided concrete examples of AI implementation in recent productions: Happy Gilmore 2 used AI to de-age characters, while the upcoming series Billionaires' Bunker utilized AI in pre-production to design wardrobes and sets.
The company's embrace of AI extends beyond content creation. As previously noted, Netflix is using AI in its advertising business to test new ad formats, generate relevant ad creative and placement for members, and accelerate the development of media plans. The company has also been expanding its use of AI for personalization and search functionality, with multiple job listings indicating a focus on leveraging large language models for content discovery and recommendations.
Balance Sheet & Cash Flow
Netflix had cash and cash equivalents as of Sept. 30, 2025, compared with $8.17 billion as of June 30, 2025.
Total debt was $14.46 billion as of Sept. 30, 2025, slightly below $14.5 billion as of the end of the previous quarter.
Streaming content obligations were $20.94 billion as of Sept. 30, 2025, compared with $20.96 billion as of June 30, 2025.
Netflix reported non-GAAP free cash flow of $2.66 billion compared with $2.26 billion in the previous quarter. This reflects improved operational efficiency and strong cash generation capabilities.
Net cash generated from operating activities in the third quarter was $2.82 billion compared with $2.32 billion in the prior-year period.
During the quarter, Netflix continued its capital allocation strategy, repurchasing shares under its existing $12 billion share repurchase authorization. The company established a commercial paper program in May 2025, providing enhanced flexibility with the ability to issue short-term, unsecured notes up to $3 billion.
Strong Q4 and Full-Year 2025 Outlook
For the fourth quarter of 2025, Netflix expects revenues of $11.96 billion, indicating growth of 16.7% year over year (16% on a foreign exchange neutral basis). Revenues are expected to be driven by continued growth in members, pricing adjustments, and advertising revenues.
The company projects fourth-quarter earnings per share of $5.45. Operating margin guidance for the fourth quarter is 23.9%, representing a two percentage point year-over-year improvement.
For full-year 2025, Netflix now expects revenues of $45.1 billion, representing 16% growth year over year (17% on a foreign exchange neutral basis). This is in line with the company's previous guidance range of $44.8-$45.2 billion. The company has adjusted its full-year operating margin forecast to 29% from the prior 30% projection, reflecting the impact of the Brazilian tax matter.
Netflix has increased its full-year 2025 free cash flow forecast to approximately $9 billion (plus or minus a few hundred million dollars), up from the prior forecast of $8.0-$8.5 billion. The improved forecast reflects the timing of cash payments and lower content spend.
Q4 Content Slate Features Major Franchises
Netflix's fourth-quarter 2025 slate features the highly anticipated fifth and final season of Stranger Things, along with new seasons of The Diplomat and Nobody Wants This. The platform will also release major film titles, including Guillermo del Toro's Frankenstein and Rian Johnson's Wake Up Dead Man: A Knives Out Mystery.
The unscripted lineup includes season 9 of Love is Blind, Building the Band, America's Team: The Gambler and His Cowboys, and a documentary about Victoria Beckham.
Netflix continues to expand its live programming strategy with the highly anticipated NFL Christmas Day doubleheader, featuring divisional matchups between the Dallas Cowboys vs. Washington Commanders and Detroit Lions vs. Minnesota Vikings. This represents a significant expansion of Netflix's live sports offerings as the company seeks to drive engagement during the holiday season.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See "2nd Wave" AI stocks now >>
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

NFLX Q3 Earnings Miss on Brazilian Tax Dispute, Posts Record Ad Sales

Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.
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The service also includes the Focus List, which is a long-term portfolio of top stocks that boast a winning, market-beating combination of growth and momentum qualities.
Breaking Down the Zacks Focus List
Building an investment portfolio from scratch can be difficult, so if you could, wouldn't you take a peek at a curated list of top stocks?
Enter the Zacks Focus List. It's a portfolio made up of 50 stocks that are set to beat the market over the next 12 months; each company selected serves as a foundation for long-term investors looking to create an individual portfolio.
One thing that makes the Focus List even more advantageous is that each pick comes with a full Zacks Analyst Report. This helps explain why each stock was selected and why we believe it's a good pick for the long-term.
The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.
Focus List Methodology
When stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Earnings estimates, or expectations of growth and profitability, come from brokerage analysts who track publicly traded companies; these analysts work together with company management to analyze every aspect that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
Investors also need to look at what a company will earn down the road. This is why earnings estimate revisions are so important.
Stocks that receive upward earnings estimate revisions are more likely to receive even more upward changes in the future. For example, if an analyst raised their estimates last month, they're more likely to do it again this month, and other analysts are likely to do the same.
Harnessing the power of earnings estimate revisions is where the Zacks Rank comes in. The Zacks Rank is a unique, proprietary stock-rating model that utilizes changes to a company's quarterly earnings expectations to help investors build a winning portfolio.
Four primary factors make up the Zacks Rank: Agreement, Magnitude, Upside, and Surprise. Each is given a raw score that's recalculated every night and compiled into the Rank, and with this data, stocks are then classified into five groups, ranging from "Strong Buy" to "Strong Sell."
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
It can be very profitable to buy stocks with rising earnings estimates, as stock prices respond to revisions. By adding Focus List stocks, there's a great chance you'll be getting into companies whose future earnings estimates will be raised, which can lead to price momentum.
Focus List Spotlight: Walt Disney (DIS)
Burbank, CA-based Walt Disney Company has assets that span movies, television shows and theme parks. Revenues were $88.89 billion in fiscal 2023.
On March 23, 2020, DIS was added to the Focus List at $85.98 per share. Shares have increased 11.43% to $95.81 since then, and the company is a #3 (Hold) on the Zacks Rank.
Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.02 to $4.93. DIS boasts an average earnings surprise of 18%.
Moreover, analysts are expecting DIS's earnings to grow 31.1% for the current fiscal year.
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Research Chief Names "Single Best Pick to Double"
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This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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Earnings Growth & Price Strength Make Walt Disney (DIS) a Stock to Watch

Disney’s DIS global theme park expansion is shaping its Experiences segment into a key growth engine for the company’s long-term success. The strategy focuses on scaling its global footprint, introducing new attractions and enhancing guest engagement through immersive storytelling and technology. The company expects Experiences' operating income to grow around 8% year over year in fiscal 2025, reflecting strong demand and continued expansion across its parks and resorts.
Disney’s expansion strategy highlights innovation and international growth. The company plans to launch “Soarin’ Across America” in 2026 to celebrate America’s 250th anniversary, introduce new shows at EPCOT and Shanghai Disneyland, and host the first HBCU Hoops Invitational in December 2025. Through its partnership with Miral for a new park in Abu Dhabi and the “Zootopia: Better Zoogether” 4D experience, Disney continues to strengthen its Experiences portfolio worldwide.
Upcoming projects include the “World of Frozen” land opening in Paris in 2026, “Avatar” and “Villains”-themed areas at Magic Kingdom, and a new “Monsters, Inc.”-themed land at Disney’s Hollywood Studios featuring a suspended coaster. These additions show Disney’s commitment to combining popular franchises with new attractions to boost guest spending and strengthen brand loyalty.
Per the Zacks model, the Experience segment’s revenues are projected to rise 5% year over year to $35.9 billion in fiscal 2025, with operating income projected to reach $10.2 billion, reflecting an 8% annual increase. The operating margin is forecasted to expand by 70 basis points to 27.9%, reflecting continued strength and profitability in Disney’s Parks and Experiences business. These projections highlight Disney’s commitment to sustained growth, operational efficiency and long-term shareholder value in fiscal 2025.
Theme Park Rivals Challenge Disney’s Dominance
Comcast’s CMCSA Universal Parks & Resorts posted an 18.9% year-over-year revenue jump to $2.35 billion in the second quarter of 2025, driven by the blockbuster debut of Epic Universe in Orlando. Powered by strong per capita spending and hit franchises like Harry Potter and Super Mario, Comcast’s Universal is accelerating its global expansion with new ventures, including the Universal Kids Resort in Texas, Horror Unleashed in Las Vegas, a Chicago horror attraction and a London park slated for 2031, escalating its rivalry with Disney’s theme park empire.
Six Flags Entertainment Corporation FUN reported strong second-quarter 2025 results, with 5.6 million more visits and in-park per capita spending of $62.46, underscoring its appeal as a value-driven, thrill-ride destination. Six Flags’ wide regional footprint and affordable pricing continue to attract local audiences seeking high-intensity experiences. While lacking Disney’s resort-scale integration, Six Flags leverages operational efficiency, strong promotions and a loyal customer base to maintain its edge in the competitive amusement-park market.
DIS’ Share Price Performance, Valuation & Estimates
Disney shares have returned 0.6% in the year-to-date period, underperforming both the Zacks Consumer Discretionary sector’s 5.9% growth and the Zacks Media Conglomerates industry’s gain of 2.3%.
DIS’ YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, DIS stock is currently trading at a forward 12-month price/earnings ratio of 17.17X compared with the industry’s 19.46X. DIS has a Value Score of B.
DIS’ Valuation
Image Source: Zacks Investment Research
According to the Zacks Consensus Estimate, Disney’s earnings are projected at $5.87 per share for fiscal 2025 and $6.48 for fiscal 2026. Estimates for fiscal 2025 remained unchanged, while fiscal 2026 slipped by a cent over the past 30 days. These figures suggest year-over-year growth of 18.11% in fiscal 2025 and 10.32% in fiscal 2026.
Image Source: Zacks Investment Research
DIS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include
Stock #1: A Disruptive Force with Notable Growth and Resilience
Stock #2: Bullish Signs Signaling to Buy the Dip
Stock #3: One of the Most Compelling Investments in the Market
Stock #4: Leader In a Red-Hot Industry Poised for Growth
Stock #5: Modern Omni-Channel Platform Coiled to Spring
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.
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Is Disney's Theme Park Push Laying the Foundation for Future Growth?

Warner Bros. Discovery’s WBD upcoming split into Warner Bros. (Streaming & Studios) and Discovery Global Media (Linear Networks) marks a pivotal step toward simplifying operations and sharpening strategic focus. The move separates fast-scaling creative assets from steady, cash-rich networks, allowing each business to grow on its own terms and giving investors a clearer view of where long-term value can emerge.
The new Warner Bros. will unite HBO, Max, DC Studios, Warner Bros. Pictures and Television into a single creative and distribution engine. With a deep pipeline that includes Supergirl: Woman of Tomorrow, The Batman II, the Harry Potter series for Max, The Lord of the Rings: The Hunt for Gollum, Wonder Woman, Clayface and returning franchises such as The White Lotus and The Last of Us, the studio is positioning itself to drive multi-platform engagement and long-tail monetisation. According to WBD, studios and streaming are expected to generate more than $3.8 billion in combined Adjusted EBITDA during 2025, supported by a stronger release pipeline and expanding digital reach.
Discovery Global Media, which houses CNN, TNT Sports, Discovery Channel, HGTV and Bleacher Report, remains a dependable profit centre anchored in live news, sports and lifestyle programming. The Zacks Consensus Estimate for 2025 network revenues is pegged at $17.57 billion, while WBD’s outlook projects EBITDA above $4 billion annually. A refreshed content slate spanning 90 Day Fiancé, Fixer Upper: The Lake House, CNN Originals and TNT Sports Live underpins the segment’s long-term relevance and profitability.
WBD has incurred over $250 million in separation-related costs, signalling its commitment to creating leaner, independently run organisations. The Zacks Consensus Estimate for total 2025 revenues is pegged at $41.82 billion, up 4.3% year over year, signalling steady progress as both entities move toward operating independently by 2026. As the separation nears completion in 2026, WBD’s dual-entity model is poised to deliver stronger execution, clearer capital allocation and more durable shareholder returns across the evolving media landscape.
WBD Faces Stiff Competition
Warner Bros. Discovery faces intense competition from Walt Disney DIS and Netflix NFLX, both dominant forces in global entertainment. Like Walt Disney, WBD is leaning on premium IP and franchise expansion to strengthen its streaming base, while Netflix continues to scale subscriber growth through aggressive international content investment. In studios and streaming, Walt Disney’s diversified ecosystem and Netflix’s global platform remain key benchmarks for scale and profitability. However, WBD’s dual focus on high-value franchises and disciplined cost control provides differentiation. As the split progresses, Disney, Netflix and WBD will define the next stage of global content leadership across film, streaming, and linear distribution.
WBD’s Share Price Performance, Valuation & Estimates
WBD shares have jumped 73.4% in the year-to-date period, outperforming both the Zacks Consumer Discretionary sector’s rise of 5.9% and the Zacks Broadcast Radio and Television industry’s growth of 29.5%.
WBD’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, WBD stock is currently trading at a forward 12-month price/sales ratio of 1.2X compared with the industry’s 4.86X. WBD has a Value Score of B.
WBD’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for WBD’s 2025 EPS is pegged at 36 cents per share, which has improved by 3 cents over the past 30 days. This indicates a significant improvement from the year-ago loss of $4.62 per share.
Warner Bros. Discovery, Inc. Price and Consensus
WBD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include
Stock #1: A Disruptive Force with Notable Growth and Resilience
Stock #2: Bullish Signs Signaling to Buy the Dip
Stock #3: One of the Most Compelling Investments in the Market
Stock #4: Leader In a Red-Hot Industry Poised for Growth
Stock #5: Modern Omni-Channel Platform Coiled to Spring
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.
Download Atomic Opportunity: Nuclear Energy's Comeback free today.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	29.93 15.01
Price/Sales	1.82 0.99
P/B	1.59 1.40
P/FCF	20.04 11.54

Indicator	TTM Median
ROE	5.33 13.09
ROA	2.86 4.72
ROI	3.89 6.69
Net Worth	167.57 0.77
Quick Ratio	0.62 0.93
Current Ratio	0.68 1.24

Indicator	TTM Median
Net Profit Margin	6.07 9.44
Operating Margin	10.07 14.24
Gross Margin	36.74 54.26
Return on tangible equity	27.01 25.55

Indicator	TTM Median
EPS	1.45 0.25
EPS Forecast	1.18 0.22
Revenue	24.69B 89.00M
Gross Profit	9.28B —
EBITDA	5.21B —

Walt Disney Company (The)

TTM metrics for the latest quarter under IFRS and their historical dynamics

Valuation

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Efficiency

Other ratios

Revenue