By Yasin Ebrahim
Investing.com – Disney's streaming service Disney+ was launched just a few months ago, but signs that it carries a real threat to Netflix (NASDAQ:NFLX) have prompted bullish upgrades from Wall Street.
UBS raised its price target on Walt Disney (NYSE:DIS) to $164 from $155 and Wolfe Research hiked its target on the stock to $175 from a previous $164. Disney was up 0.3% on the day.
The pair of upgrades come just a day after MoffettNathanson raised its target to $165 from $150 following the "successful initial rollout of Disney+."
Since its launch in mid-November, Disney+ has shown signs that it may well become a credible challenger to Netflix.
Disney+ grossed more than $50 million in its first 30 days. That not only topped revenue generated by rivals like HBO NOW and Showtime, but also was 71% of Netflix’s peak revenue in December.
The streaming service grabbed 34% market share in the fourth quarter, more than any other streaming service in the U.S., and 16% of the revenue market share.
But some have cautioned against optimism as the timing of Disney+ launch may have played a big role in the impressive start.
The new app launched just ahead of the holiday season, when consumers are less discerning with their spending and also have more time to spend with entertainment apps and games.