Netflix Is Now Worth More Money Than Disney Due To Pandemic
Netflix stock hits record high, is now worth more than Disney
Where the coronavirus outbreak has triggered unprecedented global health and economic crisis, Netflix is one of the few companies actually thriving during the pandemic.
Reportedly, the video streaming giant has now become more valuable than Disney after hitting an all-time high in the market this week.
Netflix has emerged out as the audience’s favorite, meeting viewer’s demands for content in the times when people all over the world are stuck at home during the lockdown.
With original content and regular updates to its library, Netflix has not only become the first choice of the viewers, but it has also touched an all-time high stock and now have more worth than Disney.
Reportedly, the boom in streaming means that Netflix’s value is at $426.75 a share, resulting in a market capitalization of $187.3 billion, and putting it slightly ahead of Disney’s valuation of $186.6 billion.
Valuations – April 2020:
Disney: $187 billion
Netflix: $188 billion
Valuations – Sept 2019:
Disney: $250 billion
Netflix: $110 billion pic.twitter.com/eynVLUbUxL
— Jon Erlichman (@JonErlichman) April 15, 2020
Forbes reported that aside from increased viewership, Netflix is seeing another benefit from the crisis: like the rest of Hollywood, it has had to halt production, said Lightshed partner and analyst Rich Greenfield, freeing up its cash flow as it accumulates revenue.
On the other hand, Disney is struggling to cope up with the coronavirus-related problems on multiple fronts which also includes the closure of its theme park and the loss of sports broadcasting.
However, Amazon’s stocks are also up as the company presumably is benefiting from a higher-than-usual demand for deliveries.
In general, video streaming companies are one of the few businesses that are doing well during the pandemic as they become a major source of entertainment for people in quarantine and we can see them flourish more in the coming days.
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