Netflix vs Disney: Which Streaming Stock Will Thrive in a Recession?
The S&P 500 index has continued to defy bearish expectations, rising 13% so far this year. However, investors are still concerned about a potential economic downturn due to factors such as a cooling labor market and elevated interest rates.
Two streaming stocks, Netflix (NFLX) and Walt Disney (DIS), have lost money for shareholders in 2026. But which one will hold up better in a recession?
The streaming entertainment market may be resilient in an economic downturn, as consumers opt for low-cost leisure activities like streaming services. Both Netflix and Disney offer ad-supported tiers, with Netflix generating $3 billion in ad revenue in 2026.
However, Walt Disney's lucrative experiences segment is more exposed to macro-level changes. The company generated $3 billion in operating income from experiences in its fiscal 2026 third quarter, representing 54% of the company's total profit.
In a recession, households may delay taking trips to Disney theme parks or cruises, which could result in a hit to Disney's revenue and profit.