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Netflix Worth More Than Disney After Streamer’s Stock Hits All-Time High

34 points by spking 7y ago

africasiaeuro 7y ago
I find this statement hard to believe - to say the least. Not sure where you took your info from, but Disney isn't some firm that has recently hit the headlines. No matter what sources you quote from, the sort of info suggests that Disney has no assets at all.
- pram 7y ago
  It just means the market cap is higher, nothing else.
  - dexterdog 7y ago
    It means the stock is over-priced. In a rational world the investment decisions would be trivial.
    - colejohnson66 7y ago
      It’s not overpriced if people are willing to trade it for that amount
      - Supermancho 7y ago
        Context, specifically regarding time windows, matters. A panicked starving man will pay everything he has for eggs. That doesn't mean your chickens are worth a fortune. Right now, Netflix is a ubiquitously recognized and used service. This is an unusual circumstance.
      - dexterdog 7y ago
        That was my point. People are not rational.
    - xnyan 7y ago
      I’m not saying you’re necessarily wrong but one way of thinking about it is like this: People buy shares not because they think netflix is worth more than disney, they buy shares because they think that the shares will go up in value. It’t not really a question of which company has more assists, but rather who can offer me more gain in a certain time window. I think you can absolutely make argument that Netflix is overvalued, but I think it’s certainly not crazy to bet that you make more money off Netflix vs Disney in the short/medium term.
      - chii 7y ago
        > it’s certainly not crazy to bet that you make more money off Netflix vs Disney when the price of a share is high vs its earnings, there's actually low chance of making money. Buying it when it's already high actually leads to a loss of money when the earnings expectations don't eventuate. One would need to have purchased NFLX during it's hayday years, when nobody expected it to be as big as it is today, and sell today when it's trading at high P/E ratios, to make a hefty profit. Disney, on the other hand, is a distressed company. It's price is much lower than the assets it holds, and the operations it normally conducts. This means buying disney right now is taking on a high risk, but this risk comes with rewards, when disney resumes its business (in a year or so i presume). So if you're a risk taker, disney is a better buy than NFLX, and i would dare say, you'd earn much more with DIS than NFLX will ever return to you.
    - ramblerman 7y ago
      > In a rational world the investment decisions would be trivial. This is like those poker players complaining their elaborate strategy didn't work because the opponent was too stupid.
- alephnan 7y ago
  > Disney has no assets One of the largest private land owners in Florida. Also land in Europe, Japan, California? Intellectual property and brand value? Marvel. Merchandising rights for toys. Broadway shows. Before Disney+, there was Disney channel Disney is a juggernaut
claviska 7y ago
“You just won the Super Bowl, what are you going to do next?!” “I’m going to watch Netflix!”
darepublic 7y ago
And yet Netflix's offerings seem more slim than ever. I am scrolling past endless thumbnails of The Shape of Water and I can find nothing to watch.
- fractallyte 7y ago
  Broaden your horizons! http://www.bbc.com/culture/story/20200415-the-best-tv-series-to-watch-in-lockdown http://www.bbc.com/culture/story/20200415-the-best-tv-series...
- DoingIsLearning 7y ago
  To those downvoting parent please be aware that Netflix's offering varies a lot depending on geo-location. Not necessarily a Netflix only issue but still. As anecdata, after the VPN ban, I am stuck with my local offering and last week I realized I can't watch "Groundhog Day", which exists on Netflix but not for my region... a film from 1993.
joshjdr 7y ago
Many things can impact can impact how a company might be valued. Enterprise Value (EV) is a commonly used valuation metric that subtracts cash and adds debt to the market cap as calculated by share price. Netflix has an EV of $183b and Disney has an EV $228b. Then there’s other assets and liabilities, revenue and expenses, and ratios, trends, and speculation to go with that.
L_226 7y ago
As an aside, I have been unable to register for disney+ in Germany. Both my and my partner's payment methods are always rejected with an unknown error. We tried 2 cards each, we even tried using paypal and even that still didn't work. After reaching out to their support on twitter we're still unable to register. The support chat implied that this is a common problem in Germany for some reason.
- tkumarb 7y ago
  Google pay worked fot me.

34 points by spking 7y ago

I find this statement hard to believe - to say the least. Not sure where you took your info from, but Disney isn't some firm that has recently hit the headlines. No matter what sources you quote from, the sort of info suggests that Disney has no assets at all.

pram 7y ago
It just means the market cap is higher, nothing else.
- dexterdog 7y ago
  It means the stock is over-priced. In a rational world the investment decisions would be trivial.
  - colejohnson66 7y ago
    It’s not overpriced if people are willing to trade it for that amount
    - Supermancho 7y ago
      Context, specifically regarding time windows, matters. A panicked starving man will pay everything he has for eggs. That doesn't mean your chickens are worth a fortune. Right now, Netflix is a ubiquitously recognized and used service. This is an unusual circumstance.
    - dexterdog 7y ago
      That was my point. People are not rational.
  - xnyan 7y ago
    I’m not saying you’re necessarily wrong but one way of thinking about it is like this: People buy shares not because they think netflix is worth more than disney, they buy shares because they think that the shares will go up in value. It’t not really a question of which company has more assists, but rather who can offer me more gain in a certain time window. I think you can absolutely make argument that Netflix is overvalued, but I think it’s certainly not crazy to bet that you make more money off Netflix vs Disney in the short/medium term.
    - chii 7y ago
      > it’s certainly not crazy to bet that you make more money off Netflix vs Disney when the price of a share is high vs its earnings, there's actually low chance of making money. Buying it when it's already high actually leads to a loss of money when the earnings expectations don't eventuate. One would need to have purchased NFLX during it's hayday years, when nobody expected it to be as big as it is today, and sell today when it's trading at high P/E ratios, to make a hefty profit. Disney, on the other hand, is a distressed company. It's price is much lower than the assets it holds, and the operations it normally conducts. This means buying disney right now is taking on a high risk, but this risk comes with rewards, when disney resumes its business (in a year or so i presume). So if you're a risk taker, disney is a better buy than NFLX, and i would dare say, you'd earn much more with DIS than NFLX will ever return to you.
  - ramblerman 7y ago
    > In a rational world the investment decisions would be trivial. This is like those poker players complaining their elaborate strategy didn't work because the opponent was too stupid.
alephnan 7y ago
> Disney has no assets One of the largest private land owners in Florida. Also land in Europe, Japan, California? Intellectual property and brand value? Marvel. Merchandising rights for toys. Broadway shows. Before Disney+, there was Disney channel Disney is a juggernaut

claviska 7y ago

“You just won the Super Bowl, what are you going to do next?!” “I’m going to watch Netflix!”

darepublic 7y ago

And yet Netflix's offerings seem more slim than ever. I am scrolling past endless thumbnails of The Shape of Water and I can find nothing to watch.

fractallyte 7y ago
Broaden your horizons! http://www.bbc.com/culture/story/20200415-the-best-tv-series-to-watch-in-lockdown http://www.bbc.com/culture/story/20200415-the-best-tv-series...
DoingIsLearning 7y ago
To those downvoting parent please be aware that Netflix's offering varies a lot depending on geo-location. Not necessarily a Netflix only issue but still. As anecdata, after the VPN ban, I am stuck with my local offering and last week I realized I can't watch "Groundhog Day", which exists on Netflix but not for my region... a film from 1993.

joshjdr 7y ago

Many things can impact can impact how a company might be valued. Enterprise Value (EV) is a commonly used valuation metric that subtracts cash and adds debt to the market cap as calculated by share price. Netflix has an EV of $183b and Disney has an EV $228b. Then there’s other assets and liabilities, revenue and expenses, and ratios, trends, and speculation to go with that.

L_226 7y ago

As an aside, I have been unable to register for disney+ in Germany. Both my and my partner's payment methods are always rejected with an unknown error. We tried 2 cards each, we even tried using paypal and even that still didn't work. After reaching out to their support on twitter we're still unable to register. The support chat implied that this is a common problem in Germany for some reason.

tkumarb 7y ago
Google pay worked fot me.