Netflix has now become worth more than Disney on the stock market – for now.
Variety reports that Netflix stock has closed at a record high of $426.75 per share, bringing its overall market capitalization to nearly $187.3 billion. That puts it ahead of Disney whose market cap now stands just below that at $186.6 billion. Only two months ago – Netflix was at $166 billion and Disney was at $251 billion.
Netflix is one of the few businesses to have soared during the current global pandemic forcing people self-isolating. The company has nearly 170 million subscribers worldwide, and analysts expect it to add more than 7 million new subscribers in Q1 2020.
Plus being a streaming service, Netflix doesn’t rely on theatrical releases to generate revenue and has very little in the way of brick-and-mortar costs whilst at the same time demand for its product is way up with so many people stuck at home.
Disney on the other hand has been hit hard and with he street claiming it is losing around $30 million of cash a day right now as its theme parks, cruise ships and film and TV productions are all shut down indefinitely. Disney’s streaming efforsts with Disney+, ESPN+ and full control of Hulu has helped mitigate come of those loses. Disney+ recently passed 50 million subscribers worldwide.
