When it comes to streaming media stocks, it would be difficult to find two companies about which Wall Street has more widely divergent sentiments than Disney (NYSE: DIS) and AT&T (NYSE: T).
Shares of the House of Mouse have advanced by 20% in the last year as investors continue to express faith in management’s streaming strategy. During the same period, the telecom giant hasn’t just underperformed the broader market’s gains — it has handed its shareholders a loss of 25%.
Investors, however, don’t make money by looking backward. The critical task is to view potential investments on their merits going forward. It’s also important to evaluate large companies with an eye toward all their varied businesses. For both AT&T and Disney, streaming is only one part of a much broader story.