×
You will be redirected back to your article in seconds

Netflix Stock Closes at All-Time High, Nudging Market Cap Ahead of Disney’s Again

Netflix has regained the title as world’s most valuable media stock, at least for now, after the streamer’s shares closed at a new record high to push its market capitalization just slightly ahead of Disney’s.

Netflix’s stock closed Friday at $351.29 per share, up 0.6%, to give it a market cap of $152.7 billion. Disney closed up 0.08%, recovering somewhat after a decline Thursday, with a market cap of $152.3 billion.

On Thursday, Netflix for a few hours had topped Disney’s market cap, before shares of Disney pared some of their losses to put the Mouse House back ahead at the close of trading.

The market-cap horse race between Netflix and Disney matters because it shows that investors believe Netflix — even though its business is much smaller today — has as much upside going forward as the 94-year-old Walt Disney Co.

Netflix’s appeal to investors is its global reach and fast-growing streaming-subscriber base, which hit 125 million at the end of the first quarter of 2018. So far, the company’s bullish fans are comfortable with Netflix’s heavy content spending and cash burn, pinning their hopes on the prospect of future returns.

Netflix remains much smaller than Disney in terms of its financials, and operates at a lower net margin. For 2017, Netflix generated revenue of $11.7 billion and reported net income of $559 million. Disney posted sales of $55.1 billion and net income of $8.9 billion for its most recent fiscal year, which ended Sept. 30, 2017.

The Netflix-vs.-Disney “whose market cap is bigger” storyline also is intriguing given the history between the two companies. Disney is ending its TV-window movie output deal with Netflix effective with 2019 theatrical releases — and instead, Disney will copy Netflix’s model with a planned Disney-branded subscription service next year.

Meanwhile, there was speculation before Disney’s direct-to-consumer move (which included acquiring majority control of streaming-infrastructure company BAMTech) that the conglomerate might make an M&A play for Netflix.

Netflix rose past Comcast’s market cap earlier this week. Last year, Netflix surpassed the market capitalization of Time Warner — target of AT&T’s still-pending takeover. Wags recalled Time Warner CEO Jeff Bewkes’ dis of Netflix in a 2010 interview, when he said about the company, “It’s a little bit like, is the Albanian army going to take over the world? I don’t think so.”

Reed Hastings, CEO and chairman of Netflix, has seen his personal net worth rise dramatically with the company’s stock run-up. The exec’s net worth currently estimated to be about $3.7 billion, per Forbes.

More Digital

  • tivo logo

    Tivo Preps Series 7 'Tivo Edge' DVR Made by Arris

    Tivo is getting ready to introduce the next generation of its DVR, if a new FCC filing is any indication. The new device, which is being called the Tivo Edge, is once again being made by set-top-box manufacturer Arris. A Tivo spokesperson didn’t immediately respond to a request for comment. Arris’ FCC filing is heavily [...]

  • soulcycle

    SoulCycle to Launch Station on SiriusXM, Bring Playlists to Pandora (EXCLUSIVE)

    SoulCycle devotees will soon be able to listen to their favorite spinning soundtrack all day: SiriusXM is getting a dedicated SoulCycle Radio station this summer, and the two companies will also bring playlists from select SoulCycle instructors to Pandora. SoulCycle Radio is said to feature music curated by SoulCycle instructors, as well as inspirational messages [...]

  • Jorge-Franco-and-Adrian-Suar

    Pol-ka Expands Outside Argentina, Optioning ‘El Cielo a Tiros’ (EXCLUSIVE)

    PAMPLONA, Spain  —  Taking a new expansive step as an international content player, top Argentine production house Pol-ka, has optioned small-screen rights to “El cielo a tiros,” the latest novel from “Rosario Tijeras” author, Colombian novelist Jorge Franco. Pacted via Scenic Rights, the deal sees Pol-ka planning to shoot a drama series based on the [...]

  • Tencent Music presentation at Shanghai

    Shanghai: Tencent Proposes Alliance of Music and Film

    All tech companies strive to be ubiquitous. Within China, behemoth Tencent is a clear leader of the pack. From the company’s “pan entertainment strategy” in 2012 to its 2018 equivalent “neo-creativity strategy,” Tencent keeps unveiling new master plans, each time with more in-house platforms and business approaches involved. On the margins of the Shanghai International [...]

  • Genius Spars With Google Over Lyric

    Genius Accuses Google of Scraping Song Lyrics, Music Data Company Hits Back

    Lyrics annotation service Genius.com has accused Google of scraping its site and stealing its content, the Wall Street Journal reported this weekend. However, a lyrics data provider at the center of the controversy claimed on Monday that those allegations were without merit. The Journal reported that Genius had been complaining to Google about the alleged [...]

  • littlstar ps4 app

    Littlstar Expands Beyond VR With New PS4 App, Signs Up 30,000 Paying Subscribers (EXCLUSIVE)

    A&E-backed immersive content aggregator Littlstar is expanding beyond virtual reality (VR): The New York-based startup launched a dedicated PlayStation4 app this week, giving users of Sony’s game console access to their personal media libraries, as well as both traditional and 360-degree video content from a variety of publishers. Littlstar also announced that it signed up [...]

  • Game of Thrones Season 8 Production

    'Game of Thrones,' Netflix VFX Among Those to Be Featured in SIGGRAPH Production Talks

    VFX pros behind the final season of “Game of Thrones,” the blockbuster film “Avengers: Endgame,” Pixar’s upcoming “Toy Story 4,” last year’s Oscar-winning “Spider-Man: Into the Spider-Verse,” Netflix series, including “Stranger Things,” and more will give SIGGRAPH 2019 attendees a behind-the-scenes look at their work during the conference’s Production Sessions. There will even be a [...]

More From Our Brands

Access exclusive content