Netflix Is Now Worth More Than Comcast

Marco Green
May 26, 2018

But Disney regained the crown by the close after Netflix shares pared their gains, taking the streaming company's market cap below $152 billion.

The advance underscores the high confidence investors have in the future of the world's largest paid online video service.

Netflix Inc. overtook cable giant Comcast Corp.in market value on Wednesday, highlighting the dramatic rise of video streaming at the expense of traditional television. Comcast is the largest cable provider in the US and parent of NBCUniversal, which owns film studios, pay-TV networks and theme parks.

Just last month Netflix announced it had over 125 million subscribers to it's popular service, pulling in $3.6 billion (£2.6bn) in the first quarter of this year. The cable giant is now valued at about $145.5 billion.

According to Yahoo!, Netflix shares saw a surge this afternoon, raising its value to $351.09 per share for a grand total of $162 billion.

Though Netflix has obviously become ubiquitous with entertainment the past decade or so, it's still startling to see a company so young surpass one of the biggest (arguably the biggest) company in media - the gatekeeper of two of the biggest franchises in existence (Star Wars and Marvel), not to mention most of your childhood favorites.

The Los Gatos, California-based company's shares rose to roughly $354 per share at their peak, pushing Netflix toward a market capitalization of $153 billion.

At the same time, Netflix is burning through tons of cash as it spends an ever-increasing amount on original content for its global audience - and it expects the business to be free-cash-flow negative for the next few years. Up 82 percent in 2018, Netflix is the top performing stock in the S&P 500 and has led the index three of the past six years. Earlier this year, Disney had an all-stock offer of $52.4 billion accepted for Fox's assets, including its film and TV properties. The media company will be launching a streaming service next year, which will feature its vast library of films, while also delivering all-new movies and TV series.

Other reports by Click Lancashire

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