Netflix Is Now Worth More Than Disney
One analyst says Disney is losing $30 million per day due to shutdowns related to COVID-19.
At least for the time being, Netflix is worth more than Disney when it comes to stock price and overall value based on shares. Thanks to surging stock prices for Netflix as people stay home, the streaming company's total market capitalization reached $187.3 billion.
This is just ahead of Disney's $186.6 billion valuation, according to numbers crunched by Variety. Unlike Netflix, Disney's share price has tumbled in recent weeks as the company has closed its theme parks and shut down its cruise lines. Disney's ESPN has also struggled as live sports are no longer taking place due to COVID-19 concerns
With more people at home, Netflix is expected to post subscriber gains when it reports earnings next on April 21. Netflix predicted 7 million new subscribers during the period, but this forecast came before the coronavirus outbreak, so the actual number might be higher.
Disney chairman Bob Iger--who recently took back control of the company to see it through the crisis--told Barron's that the company has the necessary capital to "keep us more than solvent through a prolonged period." Iger went on to say that Disney will never return to how it was before.
"I don't think we're ever going to see a return to business as usual," he said. Looking to the future, when the coronavirus has settled, Iger said Disney will "look for ways to run our businesses more efficiently."
Iger has given up his salary, while other Disney executives have taken paycuts to help employees through this difficult time. Disney also recently furloughed some 43,000 employees at the Walt Disney World Resort in Florida.
Disney's new streaming service, Disney+, recently crossed 50 million subscribers much faster than the company expected. Like Netflix, people are spending more time consuming content at home these days, and this includes a variety of subscription services.