Pro Traders Break Down Netflix, Disney Streaming War

ACNBC panel discussed the streaming war between Netflix Inc (NASDAQ: NFLX) and The Walt Disney Co (NYSE: DIS) Friday on CNBC's "Fast Money Halftime Report."

Credit Suisse analyst Douglas Mitchelson upgraded Netflix Friday from Neutral to Outperform and announced a $586 price target, citing the company's strong competitive position. 

The Value Awakens: Although there is room for multiple competitors in the streaming space, Sand Hill Global Advisors CIO Brenda Vingiello told CNBC that she prefers Disney over Netflix. 

Disney's direct-to-consumer business is still being undervalued relative to Netflix, she said, adding that Disney's content is "incredible."

Disney's diversified revenue stream offers more potential upside from current levels, Vingiello noted.

Netflix Strikes Back: Netflix is similar to Apple Inc (NASDAQ: AAPL) in terms of the way people use the two companies as standards for comparison, Market Rebellion co-founder Pete Najarian said, adding that all streaming services have pros and cons.

Disney is not too far off from Netflix from a price-to-earnings valuation standpoint, he said.

Netflix has a huge second half of 2021 coming in terms of content, and people are satisfied with the content, Najarian said. He told CNBC that he expects Netflix to outperform Disney over the next six months. 

Related Link: Why Netflix Is Still The Content King

Return Of The Mouse: Netflix is not at the top of the value chain in the streaming wars, Cerity Partners' Jim Lebenthal said. 

Disney has a great streaming service and it also has theme parks and studios, he said, adding that the company is a "multi-piston engine," especially in the midst of the reopening.

From the current levels of the two stocks, Lebethal told CNBC that he sees more value in Disney moving forward.

See Also: Why Disney's Stock Looks Ready To Pop

DIS, NFLX Price Action: At last check Friday, Netflix was up 1.97% at $528.28 and Disney was up 0.24% at $178.36.

Photo: Mirko Toller from Flickr.