Zacks Investment Ideas feature highlights: Netflix, The Walt Disney, Amazon and Warner Bros. Discovery

For Immediate ReleaseChicago, IL – June 12, 2025– Today, Zacks Investment Ideas feature highlights Netflix NFLX, The Walt Disney Co. DIS, Amazon AMZN and Warner Bros. Discovery WBD.Warner Bros. Discovery Splits: A New Netflix Rival Emerging?The streaming space has become incredibly competitive over recent years as companies attempt to capture viewers' attention, with many streaming offerings emerging. We've got beloved Netflix, The Walt Disney Co. with Disney+/Hulu, and Amazon with Prime Video, just for a few examples.Recently, Warner Bros. Discovery made headlines by announcing plans to separate the company into two publicly traded entities. At its simplest, WBD is breaking up its streaming services and TV networks. Concerning the advantages of the move, CEO David Zaslav said –"By operating as two distinct and optimized companies in the future, we are empowering these iconic brands with the sharper focus and strategic flexibility they need to compete most effectively in today's evolving media landscape."The move comes at a critical time, with WBD shares underperforming significantly over the last year relative to the poster child for streaming stocks, Netflix. Still, shares have outperformed the S&P 500, undoubtedly a huge improvement from the previous back-and-forth price action over recent years.Let's take a closer look at how the streamers have been performing.Netflix Remains StellarStrong results have led to NFLX's surge over the past year, with the reaffirmation of FY25 guidance in its latest print going a long way in alleviating investors. Up 85% over the past year, the stock has been a massive bright spot, with its run seemingly being ignored by many favoring the AI frenzy.The stock sports a favorable Zacks Rank #2 (Buy), with the revisions trend for its current fiscal year, showing considerable bullishness. The company is forecasted to see 28% EPS growth on 14% higher sales in its current fiscal year.Continued subscriber growth has overall been stellar for Netflix, reporting a negative subscriber growth rate just once over its last 12 quarters. The ad-supported tiers were a big surprise to consumers initially given Netflix's popularity for being ad-free, but the success of the implementation is notable.Not only did it allow the company to tap into a greater number of consumers' wallets, but it also paved the way for Netflix to generate revenue from advertisers. The digital-ad market is massive, and Netflix planting its stake in the business is a big positive from both long-term and short-term perspectives.A big crackdown on password sharing, though initially met with blowback among subscribers, has also unlocked many obvious benefits as the company looks to capture revenue from viewers who were potentially watching without an individual subscription.The company's efficiency over recent years has also been a huge tailwind, with the company's margins expanding nicely.Overall, Netflix remains to go-to pick for investors seeking exposure to the streaming space, with continued subscriber growth, operational efficiencies, and successful business implementations all leading it to become the titan is today.Can WBD Rival Netflix?WBD's Streaming segment performed nicely throughout its latest period, seeing strong subscriber growth. The company finished the period with 122.3 million subscribers, up nicely from the 99.7 million mark in the same period last year.The bulk of that subscriber growth originated from international markets, reflecting recent launches and growing penetration. It's worth noting that the company is looking to achieve 150 million global subscribers by the end of 2026, likely to be driven by an expanding content pipeline.Bottom LineWarner Bros. Discovery found itself in the headlines following the announcement of its business split, with the company breaking up its streaming services and traditional TV networks into separate entities.WBD's streaming results have overall been solid over recent periods, performing at a higher level relative to its other segments. The undisputed leader of the space, Netflix, has also continued to see strong growth, with consumers regularly subscribing to offerings.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Netflix, Inc. (NFLX): Free Stock Analysis Report The Walt Disney Company (DIS): Free Stock Analysis Report Warner Bros. Discovery, Inc. (WBD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks