12 Best Streaming Service Stocks to Buy According to Analysts

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6) The Walt Disney Company (NYSE:DIS)

Average Upside Potential: 17.7%

Number of Hedge Fund Holders: 76

The Walt Disney Company (NYSE:DIS) operates as an entertainment company. Disney+ is available as a standalone streaming service or as part of bundle offerings in the US giving subscribers access to different combinations of Disney+, Hulu, and ESPN+. Morgan Stanley upped the company’s price target to $130 from $125, keeping an “Overweight” rating. Fiscal Q1 outperformance increased its conviction in The Walt Disney Company (NYSE:DIS) delivering on FY 2025 guidance as margins again outperformed.

Morgan Stanley’s bullish view showcases the confidence in The Walt Disney Company (NYSE:DIS)’s ability to accelerate Experiences growth and deliver strong earnings upside from streaming in FY 2025. Elsewhere, analyst David Karnovsky from J.P. Morgan remains optimistic due to a combination of factors which include the company’s unique content and improving streaming financials. Notably, the recent film releases have performed well, which continues to bolster demand for Disney+. Furthermore, the integration of Hulu and ESPN on Disney+ is being lauded by marketers, consumers, and investors alike.

The Walt Disney Company (NYSE:DIS) reported strong growth in streaming profitability, fueled by technological advancements and strategic planning for platforms such as ESPN and Disney+. This success highlights a pivotal shift in the company’s business model, as it remains focused on enhancing its digital offerings. As a result of price hikes, The Walt Disney Company (NYSE:DIS)’s direct-to-consumer (DTC) streaming business, including Disney+ and Hulu, saw a profit of $293 million from a loss of $138 million one year ago.

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