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.
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.
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.
> 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.
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.
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.
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.
17 comments
[ 3.1 ms ] story [ 51.2 ms ] threadRight now, Netflix is a ubiquitously recognized and used service. This is an unusual circumstance.
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.
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.
This is like those poker players complaining their elaborate strategy didn't work because the opponent was too stupid.
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
“I’m going to watch Netflix!”
http://www.bbc.com/culture/story/20200415-the-best-tv-series...
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.