US stock market: Netflix (NFLX) Rise Amid Disney Stock (DIS) Drops

After Netflix (NFLX) stock bottomed in May 2022, shares went on a tear, surging 458% until they notched a record high this month. During that time, however, Disney stock (DIS) sank as Netflix climbed.

With clear indications of strong demand and a significant earnings boost, Disney stock is poised for a new upward movement, benefiting from a competitive edge over its streaming counterpart. As Disney targets a buy point, it has recently made its way onto Investor's Business Daily's Breakout Stocks Index.

Disney Stock Youth Advantage Over Netflix

Although the Walt Disney Company is 101 years old, it holds a "youth" advantage in terms of its stock's performance base compared to Netflix. Throughout its impressive ascent, Netflix has established multiple bases since 2022, with its latest breakout occurring in August from a fourth-stage pattern, which generally carries more risk than earlier-stage setups.

In contrast, Disney stock is currently forming a first-stage cup base, rising nearly 2% on Wednesday. The buy point stands at 123.74. Before this new formation, Disney had developed a long and deep cup with a handle, but after clearing the buy point in that base, it entered another prolonged slump.

Recently, however, Disney has found renewed momentum, driven by increasing profits in its streaming segment.

Shares of Netflix shot up 0.5% during mid-day trading on Thursday. The company traded as high as $880.95 and last traded at $877.34. 2,575,914 shares were traded during mid-day trading, a decline of 30% from the average session volume of 3,668,794 shares. Netflix stock had previously closed at $872.60.

Demand Driving Disney Stock Performance

On November 14, Wall Street's enthusiasm was clear, marked by a substantial volume gap-up following earnings. Since then, the stock has maintained and built on that one-day gain of over 6%, approaching a new buy point.

Disney has announced the return of Destination D23, the ultimate fan event from D23: The Official Disney Fan Club. Scheduled for August 29-31, 2025, this event promises to be twice the size of previous years. It will be held at Disney’s Coronado Springs Resort in Walt Disney World.

Institutional demand is further highlighted by an A- Accumulation/Distribution Rating and an impressive 2.2 up/down volume ratio. In addition, Disney's 50-day moving average is on track to cross back above its 200-day line, indicating rising technical strength. Its relative strength line has also surged as Disney moves toward a breakout.

While Netflix has also seen strong demand, reflected in its B+Accumulation/Distribution Rating and a 1.6 up/down volume ratio, investors should exercise caution given its substantial past gains, especially for those without a significant profit cushion.

Disney Stock Price Prediction for 2025

The average 12-month price target of Disney stock, based on projections from 28 analysts, is $111.57 per share, indicating a growth estimate of -3.83%. Similarly, 24/7 Wall Street forecasts a price of $111.93, suggesting a potential loss of -3.53%. These figures rely on the expectation that the upcoming film and TV schedule will unfold as planned.

Among the anticipated releases is Moana 2, featuring the beloved animated heroine from the South Pacific, set to debut during the 2024 Christmas season. This film is expected to positively impact Disney's revenues for 2025, as the company’s fiscal year concludes on September 30. Additionally, Mufasa: The Lion King, a sequel to the blockbuster The Lion King, will complete the 2024 release lineup. The 2025 family entertainment slate will also include Zootopia 2 and a live-action remake of Lilo and Stitch.

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Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.