After reporting impressive first-quarter subscriber growth that drove its stock higher more than 9% on Tuesday, Netflix Inc. (NFLX) is now worth nearly as much as the much older and larger Walt Disney Company (DIS) .
Netflix, which went public in May 2002, ended the day valued at just under $146 billion, compared to Disney's market cap of $153.6 billion. Disney's revenues dwarf those of Netflix's, having made $55.7 billion in the last 12 months compared to just $11.7 billion for Netflix. But Netflix has been growing significantly faster and is consequently valued much more highly by investors. Netflix's forward price-to-earnings ratio is 78, according to Thomson Reuters, versus just 14 times future earnings for Disney.
Netflix shares have soared 75% this year alone, compared to Disney's 5% decline, and as Netflix nears Disney's market cap, it is gearing up for a head-to-head streaming battle with the Mouse House.
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