But Wall Street analysts are generally more bullish on theme park owner
Netflix is close to overtaking Walt Disney in market value for the first time since 2020, after the amusement park owner’s earnings stoked concerns about slowing subscriber growth in its streaming business.
For Morgan Stanley analyst Benjamin Swinburne, streaming is important to Disney’s investment case. His overweight rating “is based on the view that Disney is one of a shortlist of global streaming platforms that can achieve significant scale and profitability”. But he does not see that priced into the shares yet.
Netflix shares trade at a widening premium to Disney’s based on Wall Street’s preferred valuation measure, enterprise value to projected earnings excluding costs such as interest and taxes. Netflix is priced at about twice Disney’s enterprise value to projected ebitda, according to Bloomberg data. “Disney’s singular aim was to garner that Netflix-type multiple, and they’ve succeeded mostly,” Ranganathan said. “The big question is whether Disney can continue to exceed expectations for streaming subscriber growth without sacrificing profitability.”
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
FW De Klerk, South Africa's last apartheid president, dies - The Mail & GuardianLast apartheid president dies: FW De Klerk died in his home having suffered from cancer
Read more »
Sabalenka says she got vaccinated after contracting COVID-19World number two Aryna Sabalenka said she got vaccinated against COVID-19 after having to miss last month's Indian Wells tournament because she contracted the novel coronavirus.
Read more »
Hlompho Kekana and Sundowns officially ‘part ways’, opening doors for other clubsMamelodi Sundowns captain Hlompho Kekana’s playing career with the club is officially over, with the much-decorated ex-captain having bid farewell to his team-mates at Chloorkop, the club have confirmed.
Read more »
All Blacks boss Foster expects 'formidable challenge' from IrelandAll Blacks coach Ian Foster is expecting another 'formidable challenge' from Ireland when the teams meet in Dublin.
Read more »
Ex-Sundowns, SuperSport midfielder feels short-changed by agentsFormer Mamelodi Sundowns and SuperSport United midfielder Lucky Mohom is said to be having a spat with his representatives.
Read more »