This blows my mind: Netflix market cap: $209B Disney market cap: $163B How is Netflix more?? Its only business is in streaming, ads, and I think they just started gaming. But Disney has all this and a ton more! Disney has so much more iconic IPs (Marvel, Star Wars, Pixar, espn), they also own Hulu, they have parks, games, toys, clothes, etc. Someone please explain to me 🤔
Just wait for the correction
Lol. That's not how it works. Netflix gets a lot of leverage to hire more people and build more things now. So they will keep building more products. 1 out of 10 will work.... That's enough to expand. Market will keep investing more citing growth (at first, they invested saying it has potential to grow, then they say it's growing). Thereafter, Netflix will have to find one or other expansion opportunity. This is how companies build empires.
Valuation is a reflection of future growth not current assets
Projections of future growth. They are overly optimistic for Netflix as there is quite a lot of competition in streaming nowadays.
AI hype.
What is actually super funny about this is that Disney has a higher P/E ratio. This indicates that Disney is actually more, “overvalued” than Netflix 😂
Many stocks are overvalued.
Bc Netflix is more profitable and investors like that. Take a look at P/E ratio or even more simply operating margin. Netflix is 14% operating margin and Disney is 8%. You could also just ask ChatGPT and have a dialogue there
Though Disney’s revenue is 10 times more than Netflix’s. Would you rather have 0.14*X or 0.08*10*X?
Sure the numerator grows, but the denominator grows too. (Shares outstanding). That’s why analysts like to call out EPS which stands for earnings aka net income per share.
A more apt example would be Tesla, not Netflix
There is a reason Disney want to add streaming to their revenue and Netflix don't want to add theme park to their revenue stream. One has been margin than the other
Yeah right, theme park is really a loser on our balance sheet. Clearly you know what you are talking about
Exactly, 👍 Is the other way around ^^
Disney has been consistently pumping out stinkers. If they made some decent movies their stock would go up.
Market cap is just how much money investors think the company will earn in future aka potential. Look how Tesla barely make functioning car but compare how big its market cap is compared to Toyota