Netflix Worth More Than Disney as Market Capitalization Grows

June 18, 2018
985 Views

Netflix, a company that started as a DVD rental service, has now overtaken Disney in market capitalization. Netflix is now one of the most valuable modern media companies and a promising investment for anybody wanting to grow their portfolio.

Impressive Performance from a Real Growth Stock

Predicting the winners in the stock market is something that every investor can struggle with. Sometimes, it makes more sense to get in on the growth stocks once they have already been established. Since Netflix went public, it has provided solid returns for investors. Over the last year, stock in the company has displayed incredible growth, and there’s still potential for more.

When looking at the numbers for Netflix (NASDAQ: NFLX), it’s obvious why it’s such a popular modern investment stock.

  • Netflix stock was just over $1 in 2002.
  • By 2012, stock was worth over $15 per share.
  • Today, Netflix stock trades at over $389 per share, the highest it has ever been.
  • Year to date growth is over 104%.
  • Growth for the past 12 months is more than 157%.
  • Total market capitalization is now over $170 billion.

Netflix and Other Media Stocks Have Impressive Performance in 2018

Despite being overtaken by Netflix in terms of market capitalization, Disney still remains a popular stock and the company has created excellent returns for shareholders in recent years. If you are looking for new stocks for your portfolio, and you don’t have a media or entertainment company, then Netflix and the following stocks will be worth your consideration.

  • Disney (NYSE: DIS) trades at a more affordable $108 per share and has grown 3.17% over the last year.
  • Amazon (NASDAQ: AMZN) has diversified into media with their own productions and streaming service. The company has shown impressive growth of 73.73% over the last year. Shares trade at over $1700 today.
  • 21st Century Fox (NASDAQ: FOX) sells for $44 per share and has grown 64% over the past year. There could be big returns for investors if a sale of FOX entertainment assets goes ahead this year. Both Disney and Comcast have made bids, with the company board likely to make a decision in the near future.

New Media an Important Area for Investment

The way that people consume entertainment is changing, and the companies that recognize this will be the most successful in the future. Companies like Amazon and Netflix have changed the industry with their streaming services, and competition is now fiercer than at any time in the past. Netflix shares have long term growth potential, as do all of the stocks noted in this article.

At this stage, Disney lacks its own widespread streaming service. However, with large properties like Star Wars and Marvel, the company still has growth potential through cinemas, Blu-Ray/DVD sales, and traditional merchandising and printed media.

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