Disney wants Netflix’s throne, and the Wall Street crowd is into it
Disney is really into streaming now
Disney stock struggled before COVID
Disney stock has underperformed severely this year, down 10% while the tech-heavy NASDAQ 100 is up more than 37%. Even the broader S&P 500 index, which includes struggling airlines and banks, has risen 9% this year.
In fact, Disney has spent practically the entire year in the red, having traded evenly for the first few days but sinking ever since. Disney’s market value is currently $225 billon, having shrunk $38 billion this year.
On the other hand, Disney’s new arch nemesis Netflix has seen its share price explode from $326 to $540, representing 65% growth. This has sent Netflix’s market value beyond $238 billion—more than $84 billion added since the start of 2020.
[Read: ‘Mysterious’ billionaire cashes in $127M worth of Gates-backed pharma stock]
Interestingly, just as Disney formally redirects all of its might to growing its streaming business, the markets value Netflix and Disney pretty well equally, just $38 billion separating the two content powerhouses.
For what it’s worth, a raft of Wall Street analysts are sold on the idea, with finance portalThe Streetreporting bullish sentiment among analysts from the likes of JP Morgan and Rosenblatt Securities.
Story byDavid Canellis
David is a tech journalist who loves old-school adventure games, techno and the Beastie Boys. He’s currently on the finance beat.David is a tech journalist who loves old-school adventure games, techno and the Beastie Boys. He’s currently on the finance beat.
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