When Netflix was first introduced back in 2002, it was simply a mail-order DVD service. Since then, the company has not looked back thanks mostly to pioneering the streaming media industry. Now the company’s stock has surged more than 33,000 percent.
According to some reports, the company for the first time became the world’s most valuable entertainment company. The company knocked Disney down to second place and took its place. The company’s market value soared above $153 billion, thus helping it in overtaking Disney.
However soon after some time, Disney regained its crown of the most profitable company. Disney was able to regain its crown as by the close of the day Netflix shares pared their gains.
What Netflix can gain from this;
In 2018 alone, the company’s stocks have surged more than 80 percent. While the stocks of Disney has dropped by about 5 percent over the past year. At the time the company knocked Disney out from first place, it was valued at about $153 billion which was $1 billion more than Disney’s $152 billion.
These are very impressive and interesting stats as Disney owns some of the world’s most valuable entertainment properties. The company owns Pixar Animation, the Marvel Cinematic Universe, and Star Wars also.
The company’s market cap is a reflection about of investors’ current enthusiasm. It is also an indicator of potential future growth, rather than of present revenue. However, in this department, Disney is still the leader. Disney is leading the way with revenue estimated at $55.1 billion for 2017, while Netflix’s revenue was at $11.7 billion. However, the company keeps on growing.
It has recently also surpassed estimations for subscriber growth for the first quarter of 2018, with a total of 125 million worldwide.