Netflix Is Now Worth More Than Disney
Coronavirus has thrown the economy into chaos, but some companies are actually benefiting from the lockdowns and quarantines that have otherwise crippled major industries and cost the economy millions of jobs. Netflix, for example, is thriving as people are stuck at home and hungry for entertainment. As a result, its stock hit an all-time high this week — and gave it a bigger valuation than the Hollywood juggernaut that is The Walt Disney Company.
More details, via Variety:
Netflix’s stock, extending its three-day rally, closed up 3.2%, to $426.75 per share. That gives Netflix a current market capitalization of $187.3 billion, putting it just over Disney’s $186.6 billion, after the media conglomerate’s stock finished down 2.5% amid a broader market decline Wednesday. Previously, Netflix’s all-time high closing stock price was $418.97 on July 9, 2018.
Yes, despite the fact that Disney owns movie studios, television channels, theme parks, and cruise ships, and Netflix owns basically a website and a bunch of original programming, it is now worth more than Disney. At least according to Wall Street.
Of course, Disney is one of the entertainment companies that’s been particularly affected by coronavirus. Yes, Disney has its own new streaming service, Disney+, and by most metrics, its doing very well. At the same time, though, most of the company’s other sources of revenue are suffering. No one is visiting Disneyland or Walt Disney World. No one is taking a trip to the Caribbean on a Disney cruise ship. All of the studio’s spring and early summer blockbusters have been delayed for months. The company has already furloughed thousands of employees.
Things can change on Wall Street very quickly, even when there isn’t a pandemic, so all of this could be temporary. But for now, Netflix can gloat. For now.
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Gallery — The Funniest Netflix Thumbnails We’ve Ever Seen: