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The Walt Disney Company (DIS) has been hitting stride the past six months with many of their operating segments performing at record highs. The company also has a lot of new additions that make for a bright future for the company. In addition, the company finally was able to close the acquisition of the Twenty-First Century Fox (FOXA) assets in addition to the company’s ESPN+ product, which is a direct competitor of Netflix (NFLX).
Netflix on the other hand is headed in the complete opposite direction of Disney. Netflix has seen cash outflows continue to grow, subscription growth stagnating, debt levels increase, and competition on the rise. Increased competition from the likes of Disney+ and Apple (NASDAQ:AAPL) TV+, and AT&T’s (T) HBO Max are all getting involved within the streaming industry, which will definitely have a direct impact on NFLX.
Due to Disney having a more diverse business model, including a streaming service that I believe will be extremely popular, which will put added pressure on Netflix, I believe Disney to have a brighter future. With stock levels taking a breather of late for DIS, now is a great time to initiate a long-term position in the mouse house.
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