Young Research & Publishing Inc.

Investment Research Since 1978

Disclosure

  • About Us
    • Contributors
    • Archives
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investment Analysis
    • Bonds
    • Currencies and Gold
    • Dividend Investing
    • ETFs & Funds
    • Investment Strategy
    • Retirement Investing
    • Stocks
    • The Efficient Frontier
  • Investment Counsel
  • Dynamic Maximizers®
  • Retirement Compounders®
  • Free Email Signup
  • Dick Young’s Safe America

Is Netflix a Bubble?

June 4, 2018 By Jeremy Jones, CFA

By Solcan Design @ Shutterstock.com

Great piece by Tara Lachapelle at Bloomberg on Netflix vs. Disney. Netflix market value has now surpassed Disney’s market value. Yup, as Lachapelle puts it,

An 11-year-old app that charges $11 a month is worth more to investors than the legacy conglomerates that earn billions more from TV advertising, box-office hits and cable and internet packages.

The Bloomberg article goes on to point out the conundrum in today’s market. This is a broader trend that isn’t just limited to Netflix. You see it with Amazon and its competitors. Firms that try to engage in the profit sucking, market-share stealing tactics of Amazon and Netflix see their share prices tumble while Netflix and Amazon make similar moves and their share prices soar.

The market has punished companies like Disney and Comcast for pursuing expensive growth opportunities and rewarded Netflix for doing the same. It may someday achieve the financial success its shareholders imagine. For now, though, Netflix brings in a fraction of the revenue Disney and Comcast do, carries more debt relative to Ebitda and burns through nearly $2 billion of cash every 12 months. Disney and Comcast’s operations can generate that much cash in about a month.

You can read the entire piece here.

Share this:

  • Email
  • Twitter
  • Facebook

You Might Also Like:

  • Will Disney+ be Bigger than Netflix?
  • Bearish Concerns on Netflix
  • Netflix “Biggest Disappointment in Two Years”
  • Author
  • Recent Posts
Jeremy Jones, CFA
Jeremy Jones, CFA, CFP® is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. Richard C. Young & Co., Ltd. was ranked #10 in CNBC's 2019 Financial Advisor Top 100. Jeremy is also a contributing editor of youngresearch.com.
Latest posts by Jeremy Jones, CFA (see all)
  • Prices Are Going Up - April 20, 2021
  • TIPS Not the Best Inflation Hedge Today - April 19, 2021
  • Turkey Bans Bitcoin - April 16, 2021

Search Young Research

Most Popular

  • It’s as Simple as 4%? No, Not Anymore
  • Is Inflation Imminent? Prepare Now
  • Your Port Against a Storm.
  • Vanguard Wellesley (VWINX) vs. Wellington (VWELX): Which Fund is Best?
  • Long Live the Dividend King
  • Inflation? Yes.
  • Fidelity Investments #1: Hires 4,000 Focuses on YOU
  • The Highest Yielding Dow Stocks
  • Banks Prepare for Boom
  • The Power of a Compound Interest Table

Don’t Miss

Default Risk Among the Many Concerns with Annuities

Risk and Reward: An Efficient Frontier

How to be a Billionaire: Proven Strategies from the Titans of Wealth

Could this Be the Vanguard GNMA Winning Edge?

Cryptocosm and Life After Google

Warning: Avoid Mutual Fund Year End Distributions

Is Gold a Good Long-term Investment?

How to Invest in Gold

Vanguard Wellington (VWELX): The Original Balanced Fund

What is the Best Gold ETF for Investing and Trading?

Procter & Gamble (PG) Stock: The Only True Dividend King

The Dividend King of the North

You’ll Love This if You’re Dreaming of an Active Retirement Life

RSS The Latest at Richardcyoung.com

  • Governor DeSantis: Key West’s Voters Need Your Help
  • Florida, Texas, Montana Against COVID Coercion
  • Parents Rage as Woke Schools Shame White Children as Oppressors
  • All Men Recognize the Right of Revolution
  • The Clock is Ticking: You Must Protect Your Family
  • NBA Engaged in ”Endless Social Justice Warrioring”
  • My Battle-Hardened Stock Market Strategy for the Worst of Times
  • Why Black Lives Matter Needs to Be Shut Down
  • Work to Make Money/Invest to Save Money
  • Key West Greetings From the Thirsty Mermaid

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Copyright © 2021 | Terms & Conditions

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.