After revealing a subscriber loss of 970,000 in its recently completed Q2, Netflix (NASDAQ: NFLX) has now shed 1.2 million over the previous two quarters. Still, the loss was smaller than expected and got investors enthused about the streaming giant, sending its shares 6% higher on the day following the update. 

The rosier outlook from Netflix has some investors curious about what it could mean for Walt Disney (NYSE: DIS), which has a robust streaming segment of its own. Do Netflix's more modest losses make Disney stock a buy? 

Overall, Netflix boasts 221 million subs even after losing 1.2 million over the previous two quarters. That puts it in the lead for streaming services, with Disney coming in second place with 205 million. Interestingly, Netflix had forecast losing 2 million subscribers for Q2, so the 970,000 figure was a pleasant surprise. Furthermore, Netflix says it will add 1 million subs in Q3, putting to bed fears it would continue shedding subs for several quarters more. 

Continue reading

Source Fool.com