Streaming Shakeout: Which Stocks Could Rebound in Q4?

Key Points

• Netflix remains the dominant streaming play, with ad revenue growth and an Amazon deal offering fuel for a potential Q4 rally.
• Disney leans on its NFL rights and bundled streaming strategy, but profitability in Disney+ is still an open question for investors.
• Paramount Skydance stock has surged since its debut, but upcoming earnings will show whether new leadership can fix Paramount+’s scaling problem.

Consumer discretionary stocks have lagged the market for the better part of two years. However, streaming stocks have been somewhat immune to this trend until recently. In 2025, a higher cost of living is motivating consumers to save money wherever they can.

Streaming grew in popularity as consumers were encouraged to cut the cord. But now the need to cut costs is amplifying streaming fatigue. The number of total cancellations isn’t noteworthy yet, but recent data shows a significant rise in cancellations due to excessive advertising and increased password sharing.

This fight for eyeballs will continue as consumers look for value. That explains why streaming stocks have underperformed in 2025. But if lower interest rates loosen consumer wallets, it’s a good time for investors to consider which streaming services may benefit.

Netflix: Still the Streaming Leader, But Is the Stock Tired?

Netflix Inc. NASDAQ: NFLX stock is up about 30% in 2025, which continues the run in NFLX stock that started in May 2022. The company continues to deliver by most metrics that are important to investors, such as subscriber growth and retention, improved operating margins, and growing ad revenue. All of that is backed by a steady stream of content that keeps viewers engaged.

That said, Netflix stock has made a round trip from where it was prior to its August earnings report. That could suggest that the run is getting a little tired. Short interest is only a tiny amount of the overall float, but it’s been higher-than-average in the past few months.

That said, the company’s recent advertising deal with Amazon.com Inc. NASDAQ: AMZN will provide another revenue stream and could fuel a year-end rally. Something else to consider is that the stock currently trades for over $1,100 per share. Netflix hasn’t split its stock since 2015 and has expressed no interest in doing so. But if retail investors continue to bypass NFLX, it is a lever for management to pull.

Disney: NFL Deal Adds Value, But Streaming Growth Lags

A bullish argument for The Walt Disney Co. NYSE: DIS frequently refers to the company’s decision to move beyond its parks and entertainment business into other areas, like streaming, that work together for the good of shareholders.

However, Disney+ has faced challenges almost from the beginning. Its free trial strategy led to an operating loss, as a lack of content didn’t lead to booked revenue.

The company’s partnerships with ESPN and Hulu have helped build the library, and the streaming business is starting to make money. A deal with the National Football League (NFL) leans into an area of strength, but the streaming business still seems like a reason to be more bearish than bullish on DIS stock, which has failed to turn a summer surge into an extended rally.

Paramount Skydance: A New Player with a Lot to Prove

Paramount Skydance NASDAQ: PSKY is the new company being formed by the merger of Paramount Global with Skydance Media. The path towards the merger would make for a binge-worthy show by itself, but is that a good reason to own PSKY stock?

Traders hoping for a short squeeze have been rewarded. Since going public on Aug. 7, PSKY stock has jumped nearly 87% since hitting a low around $10 per share on Aug. 11. Some of that increase can be explained by short covering. The stock has only about 11% short interest, but it went up in September compared to August.

Now the real work begins. Paramount Skydance is expected to deliver its first earnings report as a combined company on or around Nov. 14. At that time, investors can begin to separate the hope from the hype. Unlike the other two companies in this article, Paramount+ has struggled to scale its content.

Skydance is expected to help in that area. Those capabilities, along with an infusion of capital, could help make Paramount+ a name to watch in this space. This may also change the opinion of analysts who currently give the stock a consensus price target of $10.60.