Disney Tops Streaming List as Netflix, Paramount Stocks Decline

Many major streaming stocks have declined significantly since January, with Paramount Skydance PSKY, Netflix NFLX, Versant VSNT, and Comcast CMCSA down over 20% year-to-date. Seeking Alpha analysts Florian Muller and Daniel Jones were asked if now is the time to buy streaming stocks, and which ones.

Florian Muller believes investors have correctly recognized that streaming is not a new growth story, but rather a shift in TV consumption technology. Legacy media companies like Disney DIS and Comcast CMCSA view streaming as a necessary income stream to offset linear TV declines. For pure players like Netflix NFLX or Amazon's AMZN Prime Video, it created an opportunity to capture shares in the entertainment realm.

Muller is turning more bullish on Netflix NFLX, considering its current valuation levels around 20x earnings represent the maturing state and slowing growth of the industry. He has long been bullish on Disney DIS and Comcast CMCSA, but notes they are not primarily streaming stocks. Disney's real-life experiences are a more profitable way to monetize its IP.

Daniel Jones also favors The Walt Disney Company DIS from a streaming perspective due to its diversification across three platforms: Disney+, Hulu, and ESPN. Management continues to invest in these services and sees meaningful traction. For example, Disney+ has been integrated with other services, allowing subscribers to link profiles and manage subscriptions.