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Disney+ Has Wall Street Analyst Hopeful, But the Stock Hasn't Risen

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By Christian Avina

To say that Disney+ made a splash in the streaming world is a huge understatement. It's more like they caused an entire wave and the ripples just keep going. Disney is THE juggernaut in the entertainment industry and no one can rival the power they have.

It's safe to say everyone thought Disney+ would be a success and they were right. This is the first streaming service we can safely say will rival Netflix in the coming years as the dominant streaming platform.

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The Launch Of Disney+

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Disney+ started of strong racking up 28.6 million subscribers in its first three months. It won over the Wall Street analysts giving them hope, but the stocks tell another story when we talk about the "success" of Disney+.

Disney reported generally strong results for its fiscal first quarter on the 4th of February, though soft spots included the company’s Media Networks unit, where pay-TV subscriber levels declined more than 4%. Shares were at $141.50 this morning, a decline of more than 2%. In 2020 to date, the stock has slipped 3%. This could be due to the relatively new territory that Disney is trying to weave its wave through and isn't exactly sure how to capitalize on the streaming market.

Plans for Disney+

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Despite the I'd say a temporary issue with the stocks, Disney is more than confident in their ability to overcome these issues and the numbers support that.

Michael Nathanson of MoffettNathanson wrote, "Regardless of whether you own Disney’s stock, the company and their management team must be given credit for pulling off one of the greatest product launches of all time. The success of Disney+ speaks to the unrivaled quality of their content, the strength of their brands and the magic of Disney’s marketing machine."

Disney+ In The Long Term

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Disney has proven in the decades that they've been in the entertainment industry, they have staying power. Disney has been studying the streaming service world most likely since the launch of Netflix. We all knew the launch of Disney+ was coming when we saw Disney removing all their properties from Netflix and the cancelation of the different Marvel exclusives on the platform.

Nathanson wrote, " Rather than play the hackneyed short-term game of managing for quarterly earnings, he has courageously agreed to spend and do what was needed to re-position Disney for long-term success in the future. It is a shame that other industry leaders didn’t follow suit when they had their chances."

Disney+ V.S All The Others

Disney+ has some competition
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For all fans of anything movie or T.V related, this is the battle that we've wanted to see. The powerful Disney finally launching a streaming service to rival all others that have stepped into the market. All the I.P Disney owns to put onto their platform can make them the leader in the market just with that, but with streaming services that's not all that you have to factor in. The interface is something that Netflix has nailed down to a tee and it's one of the key factors that has kept them at the stop this whole time.

If Disney is going to compete stock owners need to understand that this is going to be a long term project that is going to take time if Disney plans to branch out and perform well.

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