{"id":311,"date":"2020-10-13T14:41:26","date_gmt":"2020-10-13T14:41:26","guid":{"rendered":"https:\/\/thenextweb.com\/?p=1322990"},"modified":"2020-10-13T14:41:26","modified_gmt":"2020-10-13T14:41:26","slug":"disney-wants-netflixs-throne-and-the-wall-street-crowd-is-into-it","status":"publish","type":"post","link":"https:\/\/www.londonchiropracter.com\/?p=311","title":{"rendered":"Disney wants Netflix\u2019s throne, and the Wall Street crowd is into it"},"content":{"rendered":"\n

Markets reacted positively to Disney\u2019s newly-found laser focus on streaming, pushing the company\u2019s stock price up nearly 5%.<\/p>\n

Disney announced a restructure of its media and entertainment arms in a Monday press release<\/a>. The move centralizes those businesses into one entity that will oversee all distribution and monetization of Disney content, including its streaming platform Disney+. This will mean a significant boost in funding for original content.<\/p>\n

Disney\u2019s pivot comes at the tail end of a tough year for the entertainment giant. Rolling COVID lockdowns in March obliterated its Parks, Experiences, and Products department, forcing the company to report<\/a> a profit loss of 91% in 2020\u2019s first quarter, and a $4.72 billion net loss the following quarter<\/a>.<\/p>\n

By August, park closures and canceled cruises meant a $3.5 billion hit<\/a> for Disney\u2019s parks and experiences wing.<\/p>\n

<\/figure>\n

Despite boasting more than 100 million Disney+ <\/em>subscribers and a 2% increase in revenue, the company\u2019s international and direct-to-consumer businesses (which handles Disney+ and Hulu) still bled<\/a> $706 million last quarter, significantly more than the $562 million lost in 2019\u2019s equivalent.<\/p>\n

Disney stock struggled before COVID<\/h2>\n

Disney stock has underperformed severely this year, down 10% while the tech-heavy NASDAQ 100 is up more than 37%. Even the broader S&P 500 index, which includes struggling airlines and banks, has risen 9% this year.<\/p>\n

In fact, Disney has spent practically the entire year in the red, having traded evenly for the first few days but sinking ever since. Disney\u2019s market value is currently $225 billon, having shrunk $38 billion this year.<\/p>\n

\"disney,
<\/i><\/a>This shows how much market value each company added or lost since the start of the year. Chart made with Flourish.<\/figcaption><\/figure>\n

On the other hand, Disney\u2019s new arch nemesis Netflix has seen its share price explode from $326 to $540, representing 65% growth. This has sent Netflix\u2018s market value beyond $238 billion \u2014<\/span> more than $84 billion added since the start of 2020.<\/p>\n

[Read: \u2018Mysterious\u2019 billionaire cashes in $127M worth of Gates-backed pharma stock<\/a>]<\/em><\/p>\n

Interestingly, just as Disney formally redirects all of its might to growing its streaming business, the markets value Netflix and Disney pretty well equally, just $38 billion separating the two content powerhouses.<\/p>\n

For what it\u2019s worth, a raft of Wall Street analysts are sold on the idea, with finance portal The Street<\/a> reporting bullish sentiment among analysts from the likes of JP Morgan and Rosenblatt Securities.<\/p>\n

Published October 13, 2020 \u2014 14:41 UTC <\/p>\n

Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Markets reacted positively to Disney\u2019s newly-found laser focus on streaming, pushing the company\u2019s stock price up nearly 5%. Disney announced a restructure of its media and entertainment arms in a Monday press…<\/p>\n","protected":false},"author":1,"featured_media":312,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/posts\/311"}],"collection":[{"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=311"}],"version-history":[{"count":0,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/posts\/311\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/media\/312"}],"wp:attachment":[{"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=311"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=311"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}