Investors tend to agree that Netflix (NFLX +0.24%) deserves all the attention it receives. The disruptive business successfully shook up the media and entertainment industries in recent decades. And its shares, which have risen 2,870% in the past 15 years (as of Apr. 8), have made many investors rich.
Netflix grabs the headlines. However, there’s one streaming stock that could outperform it over the next five years.
Image source: The Motley Fool.
Netflix’s rise has been impressive
In 2015, Netflix had 71 million paying subscribers to its streaming platform. And it reported $6.8 billion in revenue and $306 million in operating income that year. At the time, the business was early in its journey of spearheading the streaming movement.
Last year, in 2025, the company posted $45.2 billion in revenue and generated $13.3 billion in operating income. And it had 325 million subscribers as of Dec. 31. All of these figures are significantly higher than those a decade before.
An incredible rise like this doesn’t just happen to any business. Netflix has become a dominant force in the world of streaming. And it’s now a household name.
Today’s Change
(-0.68%) $-0.68
Current Price
$99.11
Key Data Points
Market Cap
$177B
Day’s Range
$98.95 – $100.15
52wk Range
$82.01 – $124.69
Volume
122K
Avg Vol
12M
Gross Margin
31.61%
Dividend Yield
1.25%
This stock is a better buy-and-hold candidate over the next five years
Though Netflix is thriving, its valuation isn’t cheap. You must be comfortable paying a forward price-to-earnings (P/E) ratio of 31.4 to add the business to your portfolio. That’s not exactly an attractive deal.
From a valuation perspective, Walt Disney (DIS 0.68%) is a more compelling opportunity. Shares of the House of Mouse trade at a forward P/E multiple of 14.5. This is a 54% discount to Netflix. Even if Disney shares reach the same valuation as the S&P 500 index — a forward P/E ratio of 20.3 — that implies 40% upside from its current levels today.
Earnings growth is the other tailwind, particularly from the entertainment segment’s direct-to-consumer operations, consisting of Disney+ and Hulu (excluding Hulu Live TV). This division posted a 72% year-over-year increase in operating income to $450 million in the fiscal 2026 first quarter (which ended Dec. 27, 2025), good for an 8.4% operating margin. The management team believes that for the full fiscal year, the operating margin here will be 10%, indicating robust growth.
This business is one of the few in the streaming industry that can effectively compete with Netflix. The last time Disney provided this data, at the end of fiscal 2025, there were a combined 191 million subscribers between Disney+ and Hulu — showcasing a global platform. Disney also has an advantage over Netflix in the huge amount of intellectual property that it owns and can use to produce fresh content.
Between now and April 2031, Walt Disney is the streaming stock that could outperform Netflix.
