The streaming service’s stock hit an all-time-high on Wednesday continuing a three-day rise, and closed up 3.2 percent, finishing at $426.75 per stock and giving Netflix a market capitalization of $187.3 billion.
This total figure puts the company above Disney’s $186.6 billion after the media conglomerate, which has its own ‘Disney Plus’ streaming service, saw a 2.5 percent decrease in its stock prices amid a wider market downturn.
Netflix’s previous all-time-high closing stock price was $418.97 on July 9, 2018, according to Variety.
Disney has also been cashing in on the coronavirus crisis with its Disney Plus streaming service, but other arms of its business have been significantly disrupted.
The conglomerate, perhaps best known for its film studio division The Walt Disney Studios, owns franchises such as Marvel and Star Wars, while also operating 14 theme parks around the globe and around 380 retail stores.
Meanwhile, Netflix, headquartered in Los Gatos, California, is primarily a subscription-based streaming service, although it does also produce and distribute its own media content.
As of April 2019, Netflix reportedly had over 148 million subscribers, but equity research company Pivotal Research Group predicts that it will have netted 8.45 million new subscribers during this year’s first quarter as people hunker down and binge online content during the global pandemic.
‘We believe the unfortunate COVID-19 situation is cementing NFLX’s global dominance partly driven by the incremental content spend that is enabled by their massive and growing subscriber base,’ Senior market analyst at Pivotal, Jeffrey Wlodarczak, wrote in a report.
Cowen & Co., another analyst group, more conservatively estimated an increase of 7.1 million paid subscribers for Netflix for the first three months.
Lead analyst John Blackledge wrote: ‘We expect a strong [quarter] driven by a solid slate of originals coupled with a captive audience due to the COVID-19 pandemic.’
Unsurprisingly, streaming has benefited from the near-world-wide lockdowns. According to Nielsen data, people viewing internet video on their TVs in the U.S. was up by 109% in March 2020 compared with the same four-week period in 2019.
Other businesses suited for the stay-at-home lifestyle many are now forced to live, have also cashed in on the global crisis.
For example, Amazon’s founder and CEO Jeff Bezos saw his wealth increase by $24 billion after online shopping sent the company’s share price to a new high. The world’s richest man now has a fortune of $138 billion according to the Bloomberg Billionaires Index.
News sourced from: Daily Mail