Netflix Ready to Surpass Disney as America's Most Valuable Media Company
Netflix is on a tear.

Mickey who?

Netflix Inc. (NFLX) shares extended gains Friday, giving the online streaming service another crack at overtaking Walt Disney Co. (DIS) as America's most valuable entertainment company. 

The Los Gatos, Calif.-based Netflix, founded just 20 years ago by Marc Randolph and Reed Hastings, briefly surpassed its iconic 95-year-old rival in terms of market value in Thursday trading after the shares hit a record high of $354.00 each, bolstered in part by a new content agreement with former President Barack Obama and First Lady Michelle. Disney, which is attempting to buy the media assets of Rupert Murdoch's 21st Century Fox (FOXA) , has fallen 1.8% this week amid a potentially superior offer from rival Comcast Corp. (CMCSA) .

"To me, this comparison is as fatuous as one drawn by a reporter who famously asked Babe Ruth back in 1930, how it is possible that he made $80,000 a year when President Herbert Hoover was paid just $75,000?." TheStreet's founder, Jim Cramer, said on 'Mad Money' on Thursday. "His response: 'What's Hoover got to do with it? Besides, I had a better year than he did."

That's certainly true for Netflix, at least in terms of first quarter performance, with the group adding a record 1.96 million subscribers in the United States and a further 5.46 million internationally as revenues rose 40% to $3.7 billion. 

Disney, meanwhile, saw its first quarter net income in its media division fall 6% to $2.1 billion as sports network ESPN shed subscribers amid what's known as "cord cutting" by customers opting for a-la-carte media options over standard cable packages.

Netflix shares were marked 1.2% higher in early trading Friday and changing hands at $353.48 each, a move that extends the stock's extraordinary year-to-date gain past 88% and gives it a market value of $153.6 billion, just shy of the $154 billion value of Disney, based on last trading price of $102.62.

In fact, TheStreet's technical expert, Bruce Kamich, wrote earlier this week that his analysis suggested the stock was ready for a breakout.

"If we ignore a volume surge in April we could say that volume has diminished. An upside breakout above the April high would be needed to complete the triangle," Kamich argued. "A close below $300 would likely mean we are looking at some sort of topping pattern instead."

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