Netflix is Now Worth More than Disney After Hitting All Time High

Shares of streaming giant Netflix hit an all-time high this Wednesday and is now worth more than Disney.

Netflix continued a three day rally into Wednesday and closed up 3.2% to $426.75 a share. That price gives Netflix a market cap of $187.3 billion while Disney has a market cap of $186.6 billion.

Previously, Netflix’s all-time high closing stock price was $418.97 on July 9, 2018.

Many investors are looking forward to the company’s next earnings release as the COVID-19 crisis and millions going on lockdown may have benefited the company.

Netflix is scheduled to report first quarter 2020 earnings next Tuesday, April 21, after market close. The company has previously forecast total paid net adds of 7.0 million worldwide.

Pivotal Research Group now expects Netflix to net 8.45 million new subscribers for Q1. Analyst Jeffrey Wlodarczak raised his price target on the stock from $425 to $490 per share this week and said, “We believe the unfortunate COVID-19 situation is cementing NFLX’s global [direct-to-consumer] dominance partly driven by the incremental content spend that is enabled by their massive and growing subscriber base.”

Cowen & Co. now estimates overall 7.1 million net new Netflix paid subscribers for the first three months of 2020.

“We expect a strong [quarter] driven by a solid slate of originals coupled with a captive audience due to the COVID-19 pandemic,” lead analyst John Blackledge wrote in a note on Wednesday. Cowen also raised the price target on Netflix stock, from $425 to $445 per share.

Disclaimer: We have no position in Netflix Inc. (NASDAQ: NFLX) nor Walt Disney Co. (NYSE: DIS) and have not been compensated for this article.