Saturday, March 28, 2020

Is Disney A Better Bet Compared To Netflix After ~40% Decline?

Here is the article.

Since early February, Walt Disney (NYSE: DIS) stock is down by about -38% compared to about -4% for Netflix, driven by the Coronavirus crisis. The media behemoth has had to close down its Theme Parks (which account for over 35% of total revenue) while also facing significant disruption to its TV and Studio operations. Last week, Disney noted that it would be issuing about $6 billion in debt to manage its liquidity, adding to its total borrowings of roughly $48 billion. Netflix, on the other hand, stands to benefit from such a crisis, as it is viewed as a “stay-at-home” stock, that could see traction as more people are confined to their homes, eschewing more public forms of entertainment.

Facts: 
Stock change since early February
-38% Disney
-4% Netflix

35% of total revenue - theme parks

news: 
$6 billion in debt to manage its liquidity -> 48 billion in debt

Actionable Items


Those analysis are very helpful for me to compare Netflix and Disney two stocks, in other words, 40x vs 8x stock last years.



No comments:

Post a Comment