DIS Stock Chases Netflix Higher As Analyst Sees This Edge For Disney+ Vs. Its Brand-New Rival Max

Disney's three streaming services have different target audiences, an analyst said. DIS stock rose.

Blog

Apr 19, 2023 • 2 min read

Disney (DIS), beats Warner Bros. A Wall Street analyst stated Thursday that Discovery (WBD), with its clearly differentiating video streaming services. Disney stock contributed to the Dow's gain on Thursday. Netflix (NFLX), meanwhile, was near the top of both the S&P and Nasdaq.

Laura Martin, a Needham analyst, attended the Warner Bros. Max launch event on Wednesday and found that it was lacking in execution.

Analysts say that Warner Bros.'s two streaming services, Discovery+ and Max (the brand new service), are not differentiated enough. Max includes Discovery+ as well.

Martin explained that Disney, on the other hand, has three streaming services - Disney+, Hulu, and ESPN+ - but they all have a distinct target audience. Netflix has consolidated into one streaming service.

Warner Bros. announced Max, its enhanced streaming services, on Wednesday. Max will be launched in the U.S. May 23.

Disney shares rose nearly 3% today to 100.84, which helped to drive the Dow Jones upwards after another report revealed a cooling of inflation. The shares close just a little bit above the 50-day average and just below 200-day.

The DIS stock dropped 2.5% on Wednesday, amid the Max launch event.

Disney stock is well below the 118.28 purchase point of a cup-base that's a part of a bigger consolidation.

Netflix rose 4.6% Thursday to 346.19, putting it close to a 349.90 entry for a cup with handle base.

WBD's stock rose initially, but closed at 14.04 down by 0.1%. On Wednesday, shares fell 5.8% and dropped below the 50-day line. Warner Bros. MarketSmith's chart shows that Discovery is consolidating at a 16,35 buy point. Warner Bros. Discovery was released last year.

Martin also took issue other parts of Warner Bros. Max streaming video strategy, including the decision that "HBO" was deleted from the name.

Martin stated that "'Max' is nothing (i.e. requires more marketing expenditure) whereas 'HBO spent hundreds of millions over decades to build a brand which meant best-in class TV."

The analyst concluded that Amazon Prime Video (AMZN), Disney, and Warner Bros. were the overall winners, surpassing both Netflix and Warner Bros.

Martin said that the first two companies have a better OTT strategy and more money.