Netflix now worth more than Disney after stock skyrockets

midian182

Posts: 6,307   +53
Staff member

As reported by Variety, Netflix’s stock reached $426.75 per share yesterday, giving it a market capitalization of $187.3 billion. That puts it ahead of entertainment behemoth Disney, which is valued at $186.6 billion.

Netflix had forecast that it would add seven million new subscribers in the first quarter, but some analysts believe the figure will be closer to 8.45 million. “We expect a strong [quarter] driven by a solid slate of originals coupled with a captive audience due to the COVID-19 pandemic,” wrote Cowen & Co. analyst John Blackledge. One of those originals is Tiger King (pictured top), which has proved incredibly popular.

Streaming services have seen an uptick in new users since the lockdown began. In addition to Netflix, we've seen Apple TV+, HBO, and Hulu all gain new subscribers, while Disney+ experienced the biggest jump—a 212 percent spike in sign-ups. Partly thanks to flagship show The Mandalorian, the service has reached 50 million users in just five months.

It’s not all been good news for Disney. The company’s Disney World and Disneyland parks remain closed until further notice during the pandemic, as do its international parks, though you could always experience its rides virtually. Disney’s stock was down 2.5 percent on Wednesday when much of the market declined.

Nielsen data shows US viewing of internet video on TVs was up 109 percent in March compared to the same period last year. The increase has also benefited Amazon, whose stock reached an all-time high earlier this week.

Disney World photo credit: VIAVAL via Shutterstock

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Gezzer

Posts: 107   +55
Probably not to where it was because a lot of people will just get hooked and will keep subbing.
I don't know if that's true. All streaming services have one fatal flaw. People can easily unsub and then later resub whenever they want. So a large percentage sub for a month or two to binge watch and then unsub for a month or two and sub to another service for the same reason.

I wouldn't be surprised due to the lock down that a lot of the uptick in subs are due to these people subbing since they don't have anything else to do. I'm not saying Netflix won't or can't retain some of them, but how many is another question all together.
 

Lounds

Posts: 663   +563
I don't know if that's true. All streaming services have one fatal flaw. People can easily unsub and then later resub whenever they want. So a large percentage sub for a month or two to binge watch and then unsub for a month or two and sub to another service for the same reason.

I wouldn't be surprised due to the lock down that a lot of the uptick in subs are due to these people subbing since they don't have anything else to do. I'm not saying Netflix won't or can't retain some of them, but how many is another question all together.
I think that's untrue with direct debits people are lazy and forget. Only people on shoe string budgets will cancel.