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.
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