Based on Monday's closing share prices, Netflix (which closed Monday at $679.33) is now valued at $301 billion, compared with $288 billion for Disney.
The premium is due to a chasm in the amount of revenue the companies generate per streaming subscriber, according to Geetha Ranganathan, a senior analyst at Bloomberg Intelligence. Netflix customers contribute almost three times the average revenue per month than Disney+ subscribers.
Disney+ outshines Netflix with 11.8M new subscribers in Q1 and strong forecast. Disney+ added 11.8 million new subscribers last quarter to reach 129.8 million subscribers, Disney announced as part of its Q1 2022 earnings release, and said it's still on track to reach 230 to 260 million subscribers by 2024.
As of this writing, we think Disney's stock is about 38% undervalued Netflix's stock is 41% undervalued. Given the modest difference, many investors would call this a tie. But from a pure percentage standpoint, Netflix stock is slightly more undervalued than Disney stock is.
The company still posted $1.7 billion in net income in the first quarter, with an operating margin of 25%. But Netflix had become overvalued after initially dominating the streaming landscape.
Disney stock also offers a rich valuation, despite having high growth expectations this coming year, sitting at a forward price-earnings ratio of 33.33 and a price-sales ratio of 3.57. In other words, DIS is overvalued from a fundamental point of view. WBA Put +200%! V Put +128%!
Does Netflix Own Disney? There is no relationship between Netflix and House of Mouse. There is no owner or parent company for Netflix. In the streaming wars, Netflix has become somewhat of a Disney threat due to their perception that they are the monopoly provider of the industry.
Netflix and Prime Video are still on top. Another table from JustWatch shows the changes over the quarter per streaming service. Prime Video, HBO Max, Apple TV+, and Paramount+ all went up, Netflix and Hulu are down, and Disney+ stayed the same.
Key Takeaways. Disney fell by 6% on investor fears that its streaming service might report slower growth similar to Netflix's below par earnings results. However, Disney has a deep content library of franchises that it can leverage to produce hit shows.
Disney Plus and Netflix differ greatly in costs
Disney Plus wins the streaming wars price competition. Its straightforward $8 per month plan includes 4K streaming, IMAX capabilities, and four simultaneous streams and has Netflix beat.
Disney expects Disney Plus to reach 230 million-260 million total paid subscribers by September 2024, and that the service will be profitable in fiscal 2024.
Q1 saw the addition of 11.8 million Disney Plus subscribers, more than the 8.28 million new subscribers Netflix saw in its most recent quarter. Disney stock is up nearly 8% in pre-market trading as of the time of this writing after the company announced major improvements in its Q1 results.
Netflix stock plummets as investors realize they've way overestimated its growth potential. By Q4 of last year, it was already clear that Netflix had benefited from a one-time, pandemic-driven boom that would fade fast. By mid-April, its stock had already dropped 50% from the October peak.
It is a double whammy for companies, being hit both by high cost of capital and drop in revenues. The company is facing severe concerns related to demand due to account sharing in countries like the US, India and others. This dents the revenue prospects of the company.
The drop this year stemmed in part from Netflix's decision to withdraw from Russia to protest the war against Ukraine, resulting in a loss of 700,000 subscribers. Netflix acknowledged its problems are deep rooted by projecting a loss of another 2 million subscribers during the April-June period.
Netflix. Netflix is the standard-bearer of streaming. It hosts an impressive selection of content at all times, with new titles exchanged for older ones monthly. And then there's Netflix constantly growing library of premier original programming, which still outclasses every other streaming service.
But from 2007 on, Netflix started offering movies and series as streams. Now, with a total of around 225 million subscribers worldwide, the California-based company is the most popular subscription streaming service in the world.
Disney Plus is the top Netflix competitor for many reasons. It offers the widest variety of content ranging from animated masterpieces, documentaries, the Star Wars, Marvel cinematic franchises, and the Disney Channel's expansive library of movies that go back to the 1950s.
Netflix has almost $15 billion in long-term debt, according to its letter to shareholders, taken on over the years to fund its expansion and pay for content acquisition and production.
Disney is slowly removing its library from Netflix as it beefs up its own libraries both on Disney+ and Hulu in the United States. Below will serve as a Disney removal guide from 2021 to the future and look at when the last remaining Disney properties will leave the service.
Is Netflix really getting deleted in 2022? No, Netflix is absolutely not getting deleted in 2022. The company has only been thriving over the last few years.
Key Takeaways. Disney's fourth quarter 2021 results disappointed investors, and its stock is falling. The decline was primarily due to slow growth in subscriber numbers for Disney Plus, its streaming service. Revenue for the company's other divisions improved compared to the same time last year.
Netflix is a solidly profitable company, even though its entire business model has been based on subscription fees, with no advertising revenue. Lemonides said Netflix will have an easy time growing revenue and earnings in part because of the potential to convert some shared accounts to paying accounts.
Netflix has started 2022 out rough. In the first quarter, the streaming giant reported losing 200,000 subscribers, marking the first time it lost subscribers in over 10 years. On top of that, Netflix expects to lose another 2 million more subscribers in the second quarter of 2022.