Netflix (NFLX) shares traded lower following a downgrade from Citi amid concerns about the entertainment provider's 2024 revenue outlook.

Jason Bazinet, Citi Managing Director — and the analyst responsible for the note –– joins Yahoo Finance Live to weigh in on the streamer’s outlook as well as the competition.

Bazinet believes that Disney (DIS) could possibly overtake Netflix. Bazinet sees an opportunity, noting, that with a stock price of $90, “...the street is essentially paying nothing for the streaming business."

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Eyek Ntekim

Video Transcript

- So Jason, if Netflix is not the one for 2024, what's the one, in streaming, for 2024?

JASON BAZINET: Well, I'm drawn to Disney, to be honest with you.

- Oh, wow.

JASON BAZINET: And the reason is, is that if you look at Disney's equity value right now at $90 a share, the street is essentially paying nothing for their streaming business. Why are they paying nothing for the streaming business? It's roughly 2/3 the size of Netflix, but it doesn't generate any profits. And the streets mindset at the moment is if it doesn't generate profits, we're going to value it at zero.

What I'm waiting for is a moment, a year from now, two years from now, where I begin to get questions from the buy side that says, hey, wait a minute, this Disney streaming business, right, it's 2/3 the size of Netflix. Why are we putting zero value on it? [LAUGHS] Right? I haven't got that question yet, but to me, that speaks to the opportunity.

- And that's the streaming part, Jason. What do you think Bob Iger ultimately does with the linear assets?

JASON BAZINET: Linear is challenging. It's highly cash generative. But I don't think that there's a lot you can do with linear. I think the trick is to manage the degradation in a way, where you actually have a place to go. And right now the way the street looks at Disney is, linear is shrinking, there's not a lot to do with it. But the place to go doesn't generate profits, therefore it's unexciting. And that's what I'm waiting for it to change. But there's not a lot you can do to change the underlying trajectory of the linear business.

- Jason, always love having you on the show. Thank you so much for joining us and helping us think through all things Netflix and Disney. Appreciate it.

- Absolutely. Happy to do it. Thank you for the time.