How quickly things can change!
Magic Kingdom fireworks
These are crazy times, indeed! Just yesterday, we reported that Netflix had surpassed The Walt Disney Company in value. But, thanks to some recent developments, Disney saw its stock price rebound today.
The current shutdowns have had a major financial impact on The Walt Disney Company. This news doesn’t come as a surprise since 34% of the company revenue comes from Parks & Resorts. In contrast, companies that don’t rely on in-person entertainment, like Netflix, have seen their value increase. In fact, on April 16th, Forbes reported that the market value of Netflix ($194 billion) had surpassed that of The Walt Disney Company ($184 billion).
Monorail at Disney World
But recent developments have given Disney a boost! According to Variety, the announcement of new federal guidelines that set a timetable for reopening large venues (including theaters and theme parks) encouraged investors. In fact, Disney’s share price rose 4.5% on Friday, closing at a 38-day high of $106.63. This boosted Disney’s market capitalization to over $192 billion.
Mickey Mouse
In contrast, Netflix’s share price dropped 3.7% on Friday, which reduced their market cap to $185.6 billion. And so, Netflix ended its brief stretch of being valued higher than Disney.
Walt Disney World
Despite the news, it could still be months until Disney sees the benefit of reopening of public spaces. In fact, BMO Capital analyst, Dan Salmon, said he doesn’t expect Disney’s theme parks to begin reopening before July 1. Netflix will release its first quarter earnings on April 21st, while Disney will report its quarterly earnings on May 5th. We’ll keep an eye out for how this info affects the value of each company!
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WE KNOW DISNEY.
YOU CAN, TOO.
Do you think Netflix will pass Disney in value again? Let us know in the comments!
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This brings to mind MI, when Randall is trying to beat Sulley’s record, and Celia says “never mind”. LOL. GO DISNEY!