The market cap of Netflix Inc (NASDAQ:NFLX) is higher at $194.90 billion as of Thursday because its shares trade higher at $440.12 (up 3.12%). It has surpassed the market cap of Walt Disney Co (NYSE:DIS), whose market cap is $183.56 billion.
Netflix to benefit from coronavirus crisis
Investors bet on Netflix because millions of people stay at home and looking for a diversion amid the ongoing coronavirus crisis. The governments in several nations across the world have ordered their citizens to stay at home to prevent the spread of coronavirus.
Forecasts paid net new subscribers of 7 million
According to the previous estimates, the overall paid new subscribers of Netflix are 7 million across the world. Netflix will report its Q1 2020 earnings on April 21, 2020. According to the forecasts of analysts, the company expects to beat the previous estimates.
The net new subscribers of Netflix expect to reach 8.45 million subscribers in Q1 according to the forecasts of Pivotal Research Group. In a note on Wednesday, Jeffrey Wlodarczak, an analyst said the stock of Netflix expects to benefit because of its direct to consumer dominance and the growing subscriber base.
Internet video watching surges by 109%
The internet video watching on the TV in the US has surged by 109% during the coronavirus quarantine. However, other companies’ fortunes are disturbed by the coronavirus.
Disney adds over 50 million paid subscribers
According to a communiqué last week, Disney has logged paid customers of over 50 million across the world for its family-friendly streaming service within five months of launch. It is on the backdrop of entering eight Western European nations and India. The company has gained several subscribers because of shelter at home mode watching more video content and TV that comprise The Simpsons, Frozen 2, and the Mandalorian. The customers need to pay $6.99 monthly for ads free Disney++.
The monthly charge is fixed at $12.99 for a package bundled with ESPN+ and Hulu. Disney also got a significant boost because it prepares to introduce HBO Max in May 2020 and Peacock of NBC Universal for Comcast customers in April. Chairman (Direct to consumer and International) of Disney, Kevin Mayer said he is excited that Disney is truly resonating with millions of subscribers worldwide. It bodes well for expanding its services into all of Latin America, Japan, and Western Europe.