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.

Disney appears to be a mature business with stable earnings, but without an obvious liquidity cushion and with noticeably expensive cash-based multiples. A P/E around the industry median suggests that the market is already partially recognizing the recovery in quality; however, P/S, P/B, and especially P/FCF are above industry benchmarks, which limits the potential for re-rating. At the same time, the dynamics of these multiples are generally improving: P/S and P/B are declining from higher levels, and P/E is also gradually drifting down, supporting the thesis of valuation normalization. Profitability looks mixed: ROA is above the median, net profit margin is also better than the industry, and return on tangible equity is very strong, but ROE is below the median, which hints at less-than-ideal capital efficiency. Operating margin is close to the average level, while gross margin is noticeably weaker than the industry, and this is an important signal of pressure on the revenue and cost structure. From an earnings perspective, the picture is positive: revenue, EBITDA, operating income, and net income remain large and generally support the company’s valuation. However, year by year, profitability is not growing linearly, and quarterly fluctuations are quite noticeable, so the premium to the multiples should be limited. Disney’s balance sheet is moderately leveraged: debt/equity is low relative to the industry, which is a plus, but absolute debt remains significant, and liquidity is weak—current ratio and quick ratio are below comfortable levels. This means the company is financially stable over the long term, but does not have much short-term flexibility. The dividend yield has increased, which adds shareholder appeal, but on its own the dividend factor is not yet large enough to offset the expensiveness on FCF and sales. Overall, the fundamentals support a cautiously positive view of the business, but do not justify an aggressive increase in the target price. For an investor, this is a story about a high-quality, recognizable asset with strong brands and normalizing earnings, but with limited upside due to valuation and weak liquidity. Therefore, a moderate conservative downward adjustment to the forecast is appropriate, rather than a sharp revision.

Walt Disney Company (The)

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, значительно вырос. Рынок на стороне быков.

Strong index, significantly up. The market is on the bulls' side.

Средний индекс, значительно вырос. Увеличился приток средств в лонги.

Medium index, significantly up. The inflow of funds into longs has increased.

Disney remains a profitable and resilient business, but its high P/S and P/FCF ratios, weak liquidity, and moderate margins limit the potential for revaluation.

Netflix's NFLX expanding investment in live programming is emerging as a key driver of its long-term subscriber growth strategy. Rather than pursuing an expensive portfolio of premium sports rights, the company has adopted a selective approach by adding live sports, entertainment specials and marquee events that complement its on-demand library. Recent initiatives, including the MLB Home Run Derby, the World Baseball Classic in Japan and other live entertainment events, reflect Netflix's efforts to attract new members while expanding engagement and advertising opportunities. Live programming is evolving into a strategic extension of Netflix's core streaming business rather than a standalone offering.
Early results suggest that live content is generating meaningful business value despite representing a small portion of Netflix's content investment. Six of the company's 10 largest new-member sign-up days over the past five years have been driven by live events. While live programming is expected to represent roughly 5% of content spending and only about 1% of viewing hours this year, it has been supporting subscriber acquisition, advertising demand and content discovery. Total viewing hours increased 2% year over year in the first half of 2026, adding roughly 1.5 billion viewing hours.
Netflix is also leveraging live events to strengthen its broader content ecosystem by using marquee broadcasts to promote original series and encourage viewers to discover additional programming. This integrated approach enhances returns on content investments by extending viewer engagement beyond live events while creating premium advertising inventory for marketers.
By focusing on high-impact live events that drive new-member acquisition, deepen engagement and expand advertising opportunities, Netflix is strengthening another lever for subscriber growth. As the company expands its live content portfolio in a disciplined manner, the strategy could support sustained subscriber growth while creating additional monetization opportunities.
How Netflix Stacks Up Against Peers
Compared with Disney DIS and Warner Bros. Discovery WBD, Netflix's live content strategy is more selective and event-driven. Disney continues to rely on ESPN and premium sports rights to drive engagement, while Warner Bros. Discovery leverages TNT Sports and live programming across its media portfolio. In contrast, Netflix focuses on marquee live events that complement its on-demand library and support subscriber acquisition. As Disney expands its streaming bundle and Warner Bros. Discovery integrates live sports into Max, Netflix's disciplined approach could help sustain membership growth while enhancing advertising opportunities.
NFLX’s Price Performance, Valuation & Estimates
Shares of Netflix have declined 22.8% year to date, underperforming both the Zacks Broadcast Radio and Television industry and the Zacks Consumer Discretionary sector’s fall of 20.9% and 9.6%, respectively.
Image Source: Zacks Investment Research
From a valuation standpoint, Netflix appears overvalued, trading at a forward 12-month price-to-earnings ratio of 19.36X, higher than the sector’s 16.4X. NFLX carries a Value Score of D.
NFLX’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NFLX’s 2026 earnings is pegged at $3.59 per share, down by a penny over the past 30 days. This indicates a 41.9% increase from the previous year.
Netflix, Inc. Price and Consensus
NFLX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
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
Netflix, Inc. (NFLX) : Free Stock Analysis Report
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 Live Content Push: Can it Sustain Subscriber Growth?

Key Points
Disney has been a market laggard, but it has the country's highest-grossing film so far in 2026.
Its theme parks and cruising segment continues to grow in an uncertain market.
With profit targets moving higher and the stock moving lower, Disney is now trading for just 12.4 times next year's earnings estimates.
The past few years have been great for Walt Disney (NYSE: DIS), but not necessarily its shareholders. Despite delivering five consecutive fiscal years of growing revenue -- on widening adjusted net margins in each of the last four -- the stock has lost nearly half of its value in that time.
Even the past year of modestly accelerating revenue growth, box office domination, and skeptics-defying gains at its theme parks hasn't translated to a winning stock chart. Disney shares have fallen 20% over the past 12 months.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
The bears may have momentum, but it might not be that way for long. Let's delve into three bearish knocks on Disney, and how the company is better positioned than you might think to bounce back on all fronts. Sit back, pass the popcorn, and let's roll.
1. Hooray for Hollywood
Bear thesis: Did you see Moana bomb at the multiplex earlier this month? Disney needs to stop making these sequels and live-action reboots of animated classics and start focusing on original properties.
Bull reality: Moana had a disappointing opening weekend, and it will likely result in a one-time charge down the line. It doesn't mean that the blueprint is toast. Last year's live-action remake was Lilo & Stitch; it was one of just four movies to top $1 billion in worldwide ticket sales.
Disney won't always hit it out of the park. It currently has the country's highest-grossing movie of the year in Toy Story 5, but its next-biggest year-to-date ticket seller is sixth. There are still plenty of major releases in the pipeline at the House of Mouse, including Marvel's Avengers: Doomsday in December, which should be the top draw among 2026 theatrical releases.
There were seven movies in 2024 and 2025 that cleared $1 billion in box office receipts. Disney put out six of them. As an aside, they were all sequels or live-action reboots of existing properties (even the seventh film, China's Ne Zha 2). Disney won't have the same global dominance in 2026, but it's still an indisputable hit factory.
2. As the turnstiles turn
Bear thesis: A theme park vacation isn't for the weak of wallet. Inflationary pressures and factors weighing on international travel can't help in the near term. Didn't you see Comcast warning about softness for its gated attractions in this week's earnings report?
Bull reality: Comcast did warn that it was experiencing softness at its theme parks in June and that weak trend has carried over into the first few weeks of this quarter. Disney and Comcast compete in the same two U.S. markets of Central Florida and Southern California. The situation could pose some near-term challenges, but Disney isn't Comcast.
Comcast may have opened Epic Universe in Orlando last year, but in the process, it has neglected its legacy parks. It's now been a little over five years since it added a major, well-received attraction (Velocicoaster at Islands of Adventure in June 2021) at its three older Universal Orlando destinations.
Disney is marching to a different beat. Its theme parks held up well over the past year, even when many figured the arrival of Epic Universe would crush the industry leader. With Disney and Comcast currently undergoing major additions in their Florida resorts, the long-term prospects remain strong. Expect Disney to make some major theme park announcements at its D23 expo next month, its first fan event since new CEO Josh D'Amaro took over.
3. Historical value
Bear thesis: Disney stock's fall in recent years reflects its weakening fundamentals and difficult operating environment for media conglomerates.
Bull reality: The rebuttal here starts with a simple chart, showing how cheap Disney stock has become.
Disney's business has improved dramatically in recent years. It posted a double-digit net margin in fiscal 2025, something that it hadn't done in six years. Between Disney+ turning profitable two years ago and the swift recovery of its consumer experiences business, Disney is faring much better than its meandering stock chart suggests.
The chart above tracks two earnings-based valuation multiples. The orange line is the P/E ratio for the fiscal year 2026, which ends in two months. The purple line looks out to the new fiscal year that starts in October. Did you know Disney was trading for less than 14 times this year's earnings and just 12 times next year's multiple?
It's a story that isn't really being told. Estimates have inched higher since just before it posted its fiscal second-quarter results in May. Before you argue that analysts are being too optimistic, keep in mind that they have underestimated Disney's earnings in each of its last quarterly updates.
Reels, wheels, and deals? Disney is ready to bounce back in the final five months of 2026.
Should you buy stock in Walt Disney right now?
Before you buy stock in Walt Disney, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Walt Disney wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $371,519!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,281,302!*
Now, it’s worth noting Stock Advisor’s total average return is 892% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 24, 2026.
Rick Munarriz has positions in Comcast and Walt Disney. The Motley Fool has positions in and recommends Walt Disney. The Motley Fool recommends Comcast. 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.

3 Reasons Disney Stock Can Bounce Back in the Second Half

Netflix’s NFLX global content strategy is making its growth more durable by expanding its international audience, strengthening engagement and diversifying its revenue and engagement drivers across global markets. The company continues to invest in local-language originals across major markets such as South Korea, India, Spain, South Africa and Mexico, with several regional productions evolving into global hits. Management noted that more than one-third of all viewing now comes from non-English programming, underscoring the increasing role of international content in driving subscriber growth and engagement.
This diverse content portfolio also strengthens multiple revenue drivers. Netflix estimates it has penetrated less than 45% of global households, captured only about 7% of its addressable revenue opportunity and accounts for roughly 5% of global TV viewing, highlighting significant room for international expansion. A broader mix of local and global programming supports this opportunity by improving subscriber acquisition and retention, enhancing pricing power and expanding the advertising business. Importantly, Netflix continues to grow content spending at a slower pace than revenue growth, reflecting disciplined investment as it scales its global library.
Supporting this strategy, Netflix's July 2026 "What We Watched: First Half of 2026" report disclosed that members watched more than 97 billion hours in the first half of the year. Looking ahead, the company continues to strengthen its worldwide content pipeline with new international productions such as Go Team! (Spain), Four Hands, Two Sonatas (South Korea), Operation Safed Sagar (India), Badly in Love Season 2 (Japan) and Nando Between Two Worlds (Brazil), alongside major franchises including Lupin Part 4, The Gentlemen Season 2, Avatar: The Last Airbender Season 2 and Peaky Blinders: The Immortal Man. This balanced mix of successful local originals and global franchises reinforces user engagement and supports more durable long-term revenue growth.
Netflix Faces Stiff Competition From Key Rivals
Disney DIS is challenging Netflix by expanding Disney+ internationally, increasing investment in local content and strengthening its technology. In contrast to Netflix's 'content-first' model, Disney combines globally recognized franchises and cross-platform IP with locally produced original programming. It leverages Disney parks, sports and merchandise marketing to deepen engagement while simultaneously expanding its operations beyond the United States.
Warner Bros. Discovery WBD competes with Netflix by rapidly expanding HBO Max globally, investing in international launches, and combining its century-old film and television library with local-language original programming. WBD prioritizes curated, high-quality content over sheer volume and leverages iconic franchises and local hits to drive subscriber growth and strengthen global engagement.
NFLX’s Price Performance, Valuation & Estimates
Shares of Netflix have declined 26.5% year to date, underperforming both the Zacks Broadcast Radio and Television industry and the Zacks Consumer Discretionary sector’s fall of 21.9% and 11.5%, respectively.
Image Source: Zacks Investment Research
From a valuation standpoint, Netflix appears overvalued, trading at a forward 12-month price-to-earnings ratio of 18.43X, higher than the sector’s 16.12X. NFLX carries a Value Score of D.
NFLX’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NFLX’s 2026 earnings is pegged at $3.59 per share, down by a penny over the past 30 days. This indicates a 41.9% increase from the previous year.
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.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
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.

Netflix's Global Content Strategy Expands: Is Growth More Durable?

Key Points
Berkshire Hathaway generated $3.1 billion in earnings from its cash balance in the first three months of this year.
Buffett and Abel would ideally like to allocate this capital to higher-returning opportunities.
This business operates with a substantial financial cushion that reduces risk and allows it to be aggressive when opportunities come up.
Warren Buffett might no longer be the CEO of Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB), but the business still has the same issue it had under the leadership of the Oracle of Omaha. It has more cash than it knows what to do with.
But this deep liquidity has become a source of meaningful profit. In fact, Berkshire Hathaway earns more from its cash pile in a year than most S&P 500 index companies report in total earnings. Here's the math.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
A sizable passive income stream
As of March 31, the Nebraska conglomerate had $397 billion in cash, cash equivalents, and short-term U.S. Treasuries on its balance sheet. That figure has trended higher in recent years, as the company has been a net seller of stocks.
Instead of simply holding dollars, this huge sum is primarily allocated to U.S. Treasuries. So, Berkshire is able to earn a risk-free return on this capital. During the first quarter of this year, the interest income it collected, coming mainly from its Treasury holdings, was $3.1 billion.
If rates go up, it's no surprise that this figure also rises. With the federal funds rate currently not far from its highest level in the past 15 years, Berkshire Hathaway's balance sheet benefits.
On an annualized basis, the conglomerate generated $12.4 billion in after-tax profit in the first quarter, funded by its cash pile. This is higher than most companies in the benchmark S&P 500 index. In fact, it's about the same as Walt Disney's trailing-12-month net income.
Waiting for a better use of capital
Buffett, who is still chairman, and CEO Greg Abel certainly wish they didn't have a large cash hoard. The ideal situation is for the business to find ample opportunities to deploy this capital at a higher potential rate of return. That's the ultimate objective that can drive shareholder value for Berkshire Hathaway's investor base.
The fact that there is so much cash on the balance sheet is a clear sign of the lack of opportunities the market is presenting right now. As a company with a value-focused philosophy, Berkshire Hathaway is cautious due to the elevated valuations it's been seeing.
The almost $400 billion in cash, cash equivalents, and Treasuries, however, can still be viewed in a very positive light, even though Berkshire is not earning the returns it could if its cash were actually used to buy stocks or entire businesses. This gives the conglomerate a substantial financial cushion, not only making it a safer company, but also allowing it to act quickly when opportunities eventually present themselves.
Should you buy stock in Berkshire Hathaway right now?
Before you buy stock in Berkshire Hathaway, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Berkshire Hathaway wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $369,577!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,301,557!*
Now, it’s worth noting Stock Advisor’s total average return is 908% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway 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.

Berkshire Hathaway's Cash Pile Now Earns More in a Year Than Most S&P 500 Companies Report in Total Profit. Here's the Math.

Key Points
In more than half a century, Warren Buffett oversaw an aggregate gain in Berkshire Hathaway's Class A shares (BRKA) of almost 6,100,000%.
Although Buffett was fallible, being wrong never cost him or his shareholders a fortune.
However, selling key positions too early did end up costing a pretty penny.
On Dec. 31, arguably the greatest investor of our generation, Warren Buffett, hung up his work coat for the final time as CEO of Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB). During his more than half-century as CEO, he led Berkshire's Class A shares (BRKA) to a nearly 6,100,000% return, earning him the "Oracle of Omaha" nickname.
But Warren Buffett was fallible. Although he's affably remembered for his first rule of investing, "don't lose money," he had his fair share of investing foul-ups as Berkshire's boss. However, none of his swings and misses have arguably been as sizable as with Apple (NASDAQ: AAPL) and Walt Disney (NYSE: DIS).
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Warren Buffett was fallible, but being wrong never cost him (or Berkshire) a fortune
Occasionally, the Oracle of Omaha's investments didn't go as planned.
For instance, Buffett made a sizable investment in Paramount (now Paramount Skydance) in early 2022. By the midpoint of 2024, the entirety of this stake was disposed of, with Paramount's stock crumbling under the weight of cord-cutting and a reduced dividend.
It was a similar story for Berkshire's boss during the early stages of the COVID-19 pandemic. Roughly six years ago, he sold more than $4 billion in various airline stocks, taking steep losses in the process.
But these aren't Buffett's largest nominal-dollar misses at Berkshire Hathaway. Rather, it was his decision to pare down or sell shares of Apple and Walt Disney (in hindsight) far too early.
The Oracle or Omaha's biggest misses came from selling too early
In the nine quarters leading up to his retirement (Oct. 1, 2023 – Dec. 31, 2025), Buffett sold 687,642,574 shares of Apple, equating to roughly 75% of his company's stake. On Sept. 29, 2023, Apple's stock closed at $171.21. As of July 22, 2026, Apple's shares had rallied to $325.89. Had Warren Buffett not sold a single share of Apple since the third quarter of 2023, Berkshire's stake in the company would have appreciated by another $106.4 billion!
Berkshire's now-former boss's error with Walt Disney wasn't nearly as steep -- but it's not a drop in the bucket, either. In 1966, he and a consortium of investors took a 5% stake in theme-park operator and burgeoning media company Disney for (drum roll)... $4 million. He flipped this stake one year later (1967) for $6 million. Today, a 5% stake in Disney would be worth around $8.3 billion.
The kicker is that Buffett had a second chance with Walt Disney stock in 1996. Disney acquired Capital Cities/ABC in an all-stock deal, and Berkshire was a shareholder in Capital Cities/ABC. Although Warren Buffett held these shares for a few years, he ultimately kicked Disney to the curb by 2000.
The Oracle of Omaha's most memorable misses weren't stocks that he got wrong -- it was the companies he was spot-on about that he sold too early.
Should you buy stock in Apple right now?
Before you buy stock in Apple, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Apple wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $369,577!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,301,557!*
Now, it’s worth noting Stock Advisor’s total average return is 908% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, 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.

2 of Warren Buffett's Biggest Swings and Misses Share a Common Theme

Key Points
Netflix bid $82.7 billion for Warner Bros. Discovery but walked away when Paramount Skydance offered $111 billion.
The company also passed on bidding for Roku, its former hardware division.
Recent SEC filings show a new $1 billion debt deal, but it's just some routine refinancing and not preparation for a huge buyout.
On July 20, Netflix (NASDAQ: NFLX) filed a couple of Securities and Exchange Commission (SEC) documents with "prospectus" in their names. My heart rate ticked up a bit. In a summer where every media company seems to be buying, selling, or spinning off something, my first move was to hunt for the "use of proceeds" section of Netflix's filings. Was the company loading up for another acquisition run?
Luckily, my blood pressure has returned to normal. Netflix is just refinancing $1 billion in debt that was about to mature. Old notes out, new notes in. The interest rate is higher (5.250% versus 4.375%), reflecting recent inflation trends, but this is the financial equivalent of rolling over a CD at your local bank.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Boring. Routine. Totally fine. The new debt is just replacing the old one, two days before the expiration date. That's a relief, frankly.
Meanwhile, in Hollywood...
The media industry has been reshuffling at a dizzying pace this year. Fox is buying Roku. Comcast decided NBCUniversal would be happier living on its own and announced a spin-off. Lionsgate (NYSE: LION) is standing on the corner holding a "will sell studio to good home" sign since spinning off from Starz Entertainment last year. And the Warner Bros. Discovery (NASDAQ: WBD) situation has more plot twists than an Agatha Christie whodunnit.
Netflix, of course, was part of the Warner story. The company bid $82.7 billion for Warner's studios and streaming assets back in December. For a brief moment, it looked like Netflix might finally get its hands on a legacy content library; the one thing every major competitor has that Netflix doesn't.
Then, Paramount Skydance showed up with $111 billion and a willingness to take on approximately all the debt in Hollywood. Netflix took one look at the new price tag, said "thanks, but no thanks," and walked away.
Insider reports say that Netflix also considered buying back Roku, its own former media-streaming hardware division. It didn't make financial sense and management walked away without making an official bid.
Lucky breaks or missed opportunities?
Honestly? Probably the former. Warner's library is incredible. Beyond classic films like Casablanca, The Matrix, and Sinners, the company runs HBO, DC Comics, and The Food Network. But $111 billion is a lot of money, and even Oracle founder Larry Ellison's financial backing might not be enough. Paramount Skydance's deal is currently stuck in legal limbo after a dozen state attorneys general decided they had opinions about media consolidation.
Netflix, meanwhile, is doing just fine without a legacy studio in its pocket. Revenue is up 47% over three years. Net income more than tripled over the same period. Subscriber growth is continuing despite a streaming market that's supposedly saturated. The self-made content strategy that skeptics questioned for years appears to be working.
Building something different
Here's what I find interesting about Netflix's current trajectory: The company seems less interested in forming another traditional media conglomerate and more interested in becoming something else entirely.
Video games are a growing part of the business. Netflix House is bringing the brand into physical entertainment spaces. There's a future here that looks less like "streaming service with a studio" and more like a diversified entertainment empire.
Some of the trappings should look similar to the existing Comcast/Universal and Walt Disney powerhouses. I imagine theme parks, hotels, gaming, live experiences... the works. Disney built that model over decades through acquisitions and clever land deals. Netflix might try to build it from scratch.
The movie and TV business is enormous, especially on a global scale. However, it might not be enormous enough for where Netflix wants to go. Why fight over Warner Bros. when you could be building Netflix World, starting far behind the scenes?
For now, the company is keeping its powder dry, refinancing debt, and letting everyone else write the dramatic headlines. In a summer of Hollywood chaos, that's not the worst strategy.
Should you buy stock in Netflix right now?
Before you buy stock in Netflix, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Netflix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $370,332!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,272,280!*
Now, it’s worth noting Stock Advisor’s total average return is 904% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Anders Bylund has positions in Netflix and Walt Disney. The Motley Fool has positions in and recommends Netflix, Oracle, Roku, Walt Disney, and Warner Bros. Discovery. 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.

Fox Buys Roku, and Now Comcast Is Spinning Off NBCUniversal. Does Netflix Need to Make a Big Move This Summer?

Key Points
Netflix stock’s price-to-earnings ratio is 38% more expensive than Disney’s.
In addition to sizable content-related investments, Disney’s theme parks and cruises are capital-intensive.
Netflix’s revenue growth is slowing amid intense competitive pressure.
Walt Disney (NYSE: DIS) shares have tumbled. They now trade 52% below their record from March 2021 as of July 20, at a price-to-earnings (P/E) ratio of 15.4. But the business is performing well from a fundamental perspective.
Netflix (NASDAQ: NFLX) has also faltered. Its shares are 50% off their peak from June 2025. However, they trade at a P/E ratio of 21.3, 38% more expensive than Disney.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Why is the House of Mouse so much cheaper than the streaming pioneer? This is the only answer that I can think of.
Holding on to the past
Investors who have followed Disney for a while know that the stock can never sustainably command a high valuation multiple from the investment community. That's particularly true right now. I believe there are two headwinds that pressure the stock.
The market probably continues to punish the stock because Disney's cable networks, a dying offering, are still a material part of the overall business. During fiscal 2025 (ended Sept. 27, 2025), this segment generated 10% of the company's total revenue and 17% of its operating income.
To be clear, these figures have continued to come down, but they highlight an anchor that prevents Disney from truly letting go of its past. This situation creates a financial impediment, as gains in other segments have to work harder to offset the secular decline of cable TV.
Another headwind relates to the nature of this company. Disney has always been a capital-intensive business. Creating and acquiring content is particularly expensive.
In the physical world, the theme parks and cruise ships require significant capital to maintain and grow. This reality isn't changing, and it sucks up capital that could be returned to shareholders in the form of higher dividends and stock buybacks.
Putting a premium on a pure-play streamer
Netflix shares don't look like their usual self these days. They're 50% below their all-time high. The stock immediately sank after the business reported its first-quarter results in April. And it fell again when Netflix gave investors its latest update on July 16.
Slower growth might be one of the main reasons for the dip. Netflix is forecasting a 13.3% year-over-year revenue gain in 2026. That would be the third slowest increase in the past 10 years.
Even during a notable share-price decline, though, Netflix stock commands a 38% premium to Disney. The market clearly highly values a pure-play streaming entity, especially one that pioneered the industry and has long held such a dominant position. Netflix doesn't have legacy assets that are a drag on its financial performance. It has been able to focus fully on streaming entertainment, with a natural evolution into advertising and live events.
Over the past five years, Netflix's revenue increased by 73%, higher than Disney's 62% gain. In the most recent fiscal quarter, the former posted a stellar operating margin of 33.4%, well ahead of the latter's 18.3%. These important financial metrics support the market's more favorable view of Netflix.
Where the opportunity is
Investors might be inclined to move quickly to buy Netflix shares while they've fallen so much. But I don't believe this is the right opportunity. Even at a P/E multiple of 21.3, the stock isn't cheap, particularly when competitive forces are creating the most difficult operating environment in the company's history.
Disney looks like the better buy of these two entertainment juggernauts. Its valuation, of course, presents an attractive opportunity for long-term investors to acquire a competitively advantaged company. Consensus analyst estimates call for adjusted diluted earnings per share annualized growth of 11.5% between fiscal 2025 and fiscal 2028, as success in streaming and experiences drive higher profits going forward.
It doesn't look as if Netflix's premium is going away anytime soon. However, Disney's discount is too hard to pass up.
Should you buy stock in Walt Disney right now?
Before you buy stock in Walt Disney, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Walt Disney wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $364,562!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,247,668!*
Now, it’s worth noting Stock Advisor’s total average return is 894% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 22, 2026.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix 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.

Why Is Walt Disney Stock So Much Cheaper Than Netflix? This Is the Only Answer I Can Think Of.

Key Points
Disney's streaming operating income nearly doubled year over year in its most recent quarter.
Management expects adjusted earnings per share to grow about 12% in fiscal 2026.
The stock trades at about 13 times forward earnings.
Netflix gave streaming investors a jolt last week. The industry leader reported second-quarter results that were fine on their own, but its forecast called for revenue growth to slow again in the third quarter, and the stock, already deep in a yearlong slide, fell further on Friday.
Walt Disney (NYSE: DIS) shareholders know the feeling. Shares of the entertainment giant have fallen about 15% in 2026, to roughly $96 as of this writing, and they trade about 22% off their 52-week high.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
But there's an irony in the timing. While the market frets over the streaming leader's slowing growth, Disney's own streaming business has been moving the other direction -- toward faster growth and higher profits.
So, with the leader stumbling, is the House of Mouse the contrarian buy in streaming?
Behind the decline
Disney's sell-off this year wasn't baseless. In the company's fiscal first quarter of 2026 (the period ended Dec. 27, 2025), total segment operating income fell 9% year over year. The biggest problem was the entertainment segment, where operating income dropped 35% to $1.1 billion as programming, production, and marketing costs grew faster than revenue. The sports segment's operating income fell 23%, too, dinged by about $110 million from YouTube TV temporarily dropping Disney's networks in a carriage dispute.
Layer on the long-running decline of linear television and management's own caution about consumers (Disney says it is "mindful of the macroeconomic uncertainty consumers are facing today"), and investors had reasons to sour on the stock.
Streaming profits are finally showing up
But the fiscal second quarter (ended March 28, 2026) showed a company in better shape than the stock price suggests. Revenue increased 7% year over year to $25.2 billion, and total segment operating income grew 4%. Non-GAAP (adjusted) earnings per share rose 8% to $1.57.
Streaming was the standout. Disney's subscription streaming revenue grew 13% year over year, accelerating from 11% growth in fiscal Q1, with subscription fees up 16%. And the streaming business's operating income nearly doubled year over year, climbing from $310 million to $582 million. That works out to a streaming operating margin of about 11%, up from about 6% a year earlier.
The trend within the year matters as much as the comparison. Streaming operating income went from $450 million in the fiscal first quarter to $582 million in the second, and the margin stepped up alongside it.
And Disney's content engine is helping. Zootopia 2 generated $1.9 billion at the global box office, and the franchise has since surpassed 1 billion hours streamed on Disney+. Hits like that can feed the company's parks and merchandise businesses for years to come.
The parks themselves are holding up as well. Experiences revenue rose 7% in the fiscal second quarter, and the segment's operating income grew 5%. Management called current demand at its domestic parks healthy, and it expects attendance to improve in fiscal Q3 after a 1% dip in the March quarter tied partly to soft international visitation.
Put it together, and management expects fiscal 2026 adjusted earnings per share to grow about 12%, excluding the benefit of an extra week in the fiscal year. The company is also targeting at least $8 billion in share repurchases in fiscal 2026.
Yet the stock trades at about 13 times forward earnings. That's about two-thirds of what investors are paying for Netflix's forward earnings -- for the streaming business that's accelerating, not the one that's slowing down.
Of course, Disney's cheaper multiple partly reflects its baggage. The decline of linear TV remains a headwind, and those networks still generate profits that streaming must replace. A weakening consumer could hit the parks, which remain Disney's biggest source of operating income. And film slates are hit-driven, so the box office may disappoint in any given quarter.
With that said, the market seems to be pricing Disney as if its streaming turnaround isn't happening, even as the numbers show that turnaround gaining speed. To me, that makes Disney the more interesting streaming stock today -- a profitable, diversified entertainment company at 13 times forward earnings, backed by guided double-digit earnings growth and a large buyback program.
In short, I think the pessimism has overshot, and Disney looks like a contrarian buy here. Though I'd start with a modest position. With all of this said, we'll find out more soon; Disney's fiscal third-quarter report is due in early August.
Should you buy stock in Walt Disney right now?
Before you buy stock in Walt Disney, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Walt Disney wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $364,562!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,247,668!*
Now, it’s worth noting Stock Advisor’s total average return is 894% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 21, 2026.
Daniel Sparks and his clients do not have positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix 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.

Disney Is Down 15% in 2026. With Netflix Stumbling, Is the House of Mouse a Contrarian Streaming Buy?

A study of analyst recommendations at the major brokerages shows that Walt Disney Co. (Symbol: DIS) is the #5 broker pick, on average, out of the 30 stocks making up the Dow Jones Industrial Average, according to ETF Channel. Walt Disney Co. is also a top tier analyst pick among the broader S&P 500 index components, claiming the #45 spot out of 500.
Below is a chart of rank over time:
DIS operates in the Entertainment sector, among companies like Alphabet Inc (GOOG) which is off about 1% today, and Meta Platforms Inc (META) trading higher by about 0.2%. Below is a three month price history chart comparing the stock performance of DIS, versus GOOG and META.
DIS is currently trading down about 0.2% midday Tuesday.
Further DIS Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Broker Darlings of the Dow: Walt Disney Ranks As a Top 15 Analyst Pick

(RTTNews) - Tuesday, The Kraft Heinz Company (KHC) announced a long-term multi-year partnership with The Walt Disney Company (DIS), aiming to deliver new menu offerings, distinctive dining experiences and storytelling-driven offerings inspired by Disney's unmatched portfolio of beloved stories and franchises.
Starting this summer, the collaboration will show up across Disney's North American parks and resorts, Disney Cruise Line, and Disney's studios and streaming platforms, and will create opportunities involving Disney's iconic franchises.
The agreement also intends to unlock opportunities for integrated marketing campaigns, digital content and brand-led marketing campaigns across Disney's media platforms.
Currently, KHC is trading at $25.74, down 0.44 percent on the Nasdaq and DIS is trading at $96.57, up 0.13 percent on the New York Stock Exchange.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Walt Disney Company (The)

Trend

Trend Class

Trend Power

Pattern

EMA

EMA-20

EMA-50

EMA-100

EMA-20

EMA-50

EMA-100

Oscillators

Stochastic

RSI

MACD

Candle pattern type