For the past few years, it’s just been easiest to call Disney the biggest film/TV studio on the planet. What else do you call the company that owns Marvel Studios, Pixar, Lucasfilm, and a library filled with animated classics that shaped generations? Well, now, you call Disney “Number 2.” You see, thanks to the COVID-19 pandemic, Netflix has found itself taking the crown of being the top studio around, according to Wall Street.
Variety is reporting that, at the end of trading last night, Netflix has overtaken Disney in total net worth, with a stock price of $426.75 per share, which gives it a current market capitalization of $187.3 billion, which beats the Mouse House’s $186.6 billion. Why the sudden change at the top? Well, apparently it’s the global pandemic, which has made Netflix a hot commodity.
According to analysts, the rise in stock prices for Netflix has a lot to do with the COVID-19 pandemic forcing everyone to stay home, with streaming entertainment being one of the top diversions. In addition, the platform struck gold at the beginning of the self-isolation measures with the release of “Tiger King,” which became a global phenomenon and one of the biggest hits in the company’s relatively short history.
Obviously, when you talk about the fortunes of Netflix and Disney, we’re discussing the very top of the entertainment food chain, and thus, the plight of the very successful and very rich. It’s important to remember that Disney is doing just fine, despite losing billions with the COVID-19 pandemic. The company isn’t on the verge of bankruptcy or financial collapse. It’s just that the lower stock price, combined with a surge from Netflix, makes the streaming service in a very favorable position.
And as we don’t know how this industry will recover and what the landscape will look like when the pandemic has run its course, it’s unclear if Netflix will remain on top or if this is just a quick blip and ding to Disney’s seemingly impenetrable armor. But for now, Netflix is probably very happy.