Netflix’s market cap is now bigger than Comcast, which is just about only a symbolic factor on condition that the businesses are valued very in another way however is like a kind of moments the place Apple was bigger than Exxon and could also be some type of watershed second for expertise. Or not.
A pair notes on this largely symbolic and probably not essential factor:
- Netflix customers are going up. That’s a quantity that folks take a look at. It’s why Netflix’s magic market quantity goes up.
- Persons are chopping cable TV cords. Netflix has no cable TV cords. It does, nonetheless, require a wire related to the web. So it nonetheless wants a wire of some type, until all the pieces goes wi-fi.
- Netflix is spending some huge cash on content material. Folks devour content material. Cable can also be content material, however it’s costly content material. Additionally, Comcast will begin bundling in Netflix into its cable subscriptions.
- They’ve a really completely different price-to-earnings ratio. Comcast is valued as an actual firm. Netflix is valued as a… nicely, one thing that’s rising that can possibly be a enterprise extra huge than Comcast. Possibly.
- Comcast makes rather more cash than Netflix. Netflix had $three.7 billion in income in Q1. Comcast had $22.eight billion and free money circulation of $three.1 billion. Netflix says it’ll have -$three billion to -$four billion in free money circulation in 2018.
Anyway, Netflix will report its subsequent earnings in a pair months, and this quantity is certainly going to alter, as a result of it’s fairly arbitrary on condition that Netflix shouldn’t be valued like different corporations. The inventory value doesn’t swing as a lot as Bitcoin, however issues may be fairly random.
In the interim, Riverdale Season 2 is on Netflix, so possibly that’s why it’s extra precious than Comcast . See you guys in a couple of hours.