Both entertainment giants are higher in early Monday trading.
Disney took the awards event’s most prestigious prize -- top dramatic motion picture -- for “Nomadland.” Netflix hit it big with TV shows “The Crown” and “Queen’s Gambit.”
The two companies’ streaming operations apparently rank No. 1 and No. 3 in subscribers, with Netflix at more than 200 million and Disney+ at almost 95 million. Amazon (AMZN) is apparently No. 2 at more than 200 million.
The trio have established themselves as perhaps the top film and TV studios, though many other media and technology companies are competing.
Disney recently traded at $192, up 1.6%, and Netflix was at $544.20, up 1%. S&P 500 futures were up 1.1%.
Morningstar analyst Neil Macker puts Disney’s fair value at $154. He noted in a commentary last month that “in a little over a year after launching, [Disney+] has exceeded the top end of the company’s original fiscal 2024 guidance of 60 million-90 million subscribers.” Bottom line: “Disney is successfully transforming its business to deal with the ongoing evolution of the media industry.”
Macker assigns fair value of $250 to Netflix. “Netflix ended an impressive 2020 with strong subscriber growth,” he wrote in January. But “the global rollout of Disney+ and the launches of Peacock (CMCSA) and HBO Max (T) will increase churn and pressure gross adds for Netflix over the near future.”