Disney increased the number of Netflix members while it was heavily damaged by the coronavirus outbreak. Netflix’s market cap surpassed Disney’s market cap to $ 158 billion.
The shares of the Disney company are suffering a big drop due to coronavirus. Disney fell behind Netflix, especially as demand for Netflix increased after ‘Stay At Home’ calls.
In the 2020’s so far, Netflix grew by 9.2%, while Disney fell more than 40%. According to the latest situation, Netflix’s market value reached $ 158 billion, while Disney’s value fell to $ 154.8 billion.
Here is the market value chart of Disney and Netflix:
The current situation is not Netflix’s first transition to Disney. This happened in March 2019, but this was short-lived. In the middle of 2018, Netflix boomed, raising its market value. Disney is among the most injured companies in coronavirus.
The virus was hit hard by most companies, while Netflix felt like medicine. Most people stay at home due to the virus, and in the meantime, resort to serial / movie viewing platforms like Netflix to avoid getting bored. In this way, increasing the number of members Netflix earnings increase. Credit Suisse also proves this, saying that there is a very high increase in the number of downloads of the Netflix app in countries where the coronavirus is more affected.
The creation of Disney’s own media platform put the company at greater risk. According to analyst Geetha Ranganathan, the company has taken a hit in many places. Disney’s theme parks have been closed, their movies have been delayed, the sporting events they broadcast on its channel have been canceled, and their production has stopped. According to Ranganathan, the company is under severe pressure. According to Bloomberg, Disney’s earnings expectations for the whole year fell 12.5%, while last month’s earnings expectations fell 1.2%.