Netflix Inc. (NFLX)

It can live in harmony with Disney+. He still enjoys their content and user experience. They are a pioneer. Also: Netflix is still growing rapidly internationally. (Analysts’ price target is $306.50)

He owns Disney instead. Likely a long-time winner, but doesn't know when they will generate enough cash flow to justify their valuation (and offset their huge cash investments into content).

He prefers Disney which he owns, and will be a strong competitor to Netflix. Netflix does have the power to raise prices and they can premiere big films like the Irishman. Netflix can do well, but competitors like Disney are coming. The big question is, How many streamers will a consumer have?

Apple and Disney+ mean more competition for Netflix, and higher costs to buy programs. There's more growth internationally with North American growth slowing. He prefers Disney to Netflix.

Facing competition from Disney, Amazon, Google, and Apple. Expensive. Is the 40% growth rate sustainable? Cash burn. Stock's gone sideways. Technically weak. Underperformed since 2018 with the other FANGs.

NFLX vs. DIS Two completely different companies in the same business. Netflix is the grand daddy of streaming. Success built on increasing subscriber base. Under the hood, it's cashflow negative. Accounting tricks let them amortize earnings. Disney is an established behemoth, getting into streaming. They own parks and ESPN, and have substance to support streaming investment.

62 million subs in US and 69 million worldwide. For five years it didn't have competition, and that competition has a body of existing content to stream (Disney+ and others). Compared that to Netflix, it needs to spend a lot on content. Yet, it isn't generating the cash flow to offset that cost. The question is: How many streamers will consumers subscribe to?