Streaming turned profits in 2024. Wall Street's biggest worry is whether momentum can last.

Netflix has established itself as the leader in the streaming wars with substantial earnings and a growing subscriber base. The company's ability to maintain its momentum in profitability, along with continuing subscriber growth, is pivotal. However, the overall competition from others seeking to adapt and reduce losses presents both a risk and opportunity for investors.

Disney, while having reported profits, is still transitioning its streaming strategy and faces challenges in balancing traditional media declines with streaming growth. This uncertainty could hinder its stock performance as the company works to solidify its position.

Other competitors like NBCUniversal and Warner Bros. Discovery have improved their standings but still remain in a position where they need to demonstrate scalable growth and consistent profitability, making them less attractive for immediate investments.

With traditional media companies struggling with transitioning their business models, any slowdown in the momentum observed in 2024 could lead to negative stock reactions across the sector, particularly for those who are heavily reliant on legacy operations. Investors should remain cautious.