Netflix hits a record high, passes Disney in size
Netflix shares hit an all-time high early on Thursday, and in the process the company edged past Disney in terms of market cap.
Shares touched an all-time high of $346.73 (R4 324,63), giving Netflix a market cap of approximately R1 trillion. Disney's market cap is roughly R1 trillion.
The streaming-video giant has seen momentum as of late, propelled by its first-quarter earnings report. Although revenue and earnings-per-share were in line with Wall Street expectations, subscriber growth blew past estimates. The company added 7.41 million subscribers in the US and internationally — its biggest total for Q1.
International growth has been an area investors have hung their hat on recently, and all the signs seem to be pointing to Netflix maintaining its dominance as it expands globally. Morgan Stanley data shows there's much more room for international growth, which the company has just begun to tap into.
Netflix has said it will spend $8 billion on content this year and expects its cash burn to rise to R37 billion-R49 billion.
Netflix is up 72.66% this year, far outpacing 0.72% gain of S&P 500.
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