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 otherwise however is like a kind of moments where Apple was larger than Exxon and could also be some sort of watershed second for expertise. Or not.
A pair notes on this largely symbolic and not likely 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, nevertheless, require a twine linked to the web. So it nonetheless wants a twine of some kind, until the whole lot goes wi-fi.
- Netflix is spending some huge cash on content material. Individuals eat content material. Cable can be content material, however it’s costly content material. Additionally, Comcast will start 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 way more cash than Netflix. Netflix had $3.7 billion in income in Q1. Comcast had $22.eight billion and free money stream of $3.1 billion. Netflix says it can have -$Three billion to -$four billion in free money stream in 2018.
Anyway, Netflix will report its subsequent earnings in a pair months, and this quantity is certainly going to vary, as a result of it’s fairly arbitrary on condition that Netflix shouldn’t be valued like different firms. The inventory worth doesn’t swing as a lot as Bitcoin, however issues could be fairly random.
In the interim, Riverdale Season 2 is on Netflix, so possibly that’s why it’s extra helpful than Comcast . See you guys in a number of hours.