Netflix's (NASDAQ: NFLX) stock price plunged about 60% this year and erased nearly four years of gains. The bulls fled as the streaming video giant's subscriber growth stalled out and its operating margins declined. The bears believe Netflix's heyday is over.
There are two prevailing opinions of the upcoming, ad-supported version of Netflix's (NASDAQ: NFLX) streaming service. One only has to look at the results that Netflix's competitors are producing as well as Netflix's own outlook regarding its ad-supported platform. On the off chance you're reading this and aren't aware, Netflix intends to launch a lower-cost, ad-supported version of its streaming service in select markets sometime later this year, according to industry reports.
With this in mind, here's why it makes sense to buy Walt Disney (NYSE: DIS) and sell Netflix (NASDAQ: NFLX) right now. At the time of this writing, Walt Disney is hovering around $97 per share, far below its $157 price at the start of 2022. Indeed, at the beginning of the year, Walt Disney was outperforming the S&P 500 by a few points.