Netflix rules Media as following its first Academy Award for the documentary “Icarus,” Netflix’s stocks rose nearly 5% on Monday and another 2% Tuesday to an all-time high. But Fox, Disney, Time Warner and Comcast’s Universal each bagged the statues and they did not receive the similar Oscar bumps. Their shares were deprived of broader market’s gains. Most gained less than 1% Monday while the Dow rose by nearly 1.5%.
However, Netflix is worth $140 billion — about the same as Time Warner and Fox combined and only $16 billion less than Disney. Netflix is churning out its own hits TV shows that is more than 117.5 million streaming sponsors across the globe can hardly binge watch. Movies are practically a second thought for Netflix subscribers given the companies enormous original content.
House of Cards will be airing its final season without Kevin Spacey that will concentrate on the Presidency of Robin Wright’s Claire Underwood. And an advertisement for it telecast during Sunday’s Oscars. However, Netflix cannot air major Oscar winners. “Coco” is on Apple’s (AAPL) iTunes. So are “Three Billboards outside Ebbing, Missouri,” “Darkest Hour” and Dunkirk, which are also available on Amazon.
This is not consequential as the golden age of TV is a dilemma for both big studios as well as major movie theater chains AMC and Cinemark. It is the Wall Street that is not rendering Netflix as an important player.
The stock is now up nearly 70% in the present year and trades at a sky rocketing of 117 times 2018 earnings estimates. However the towering price target for Netflix is now just $330 a share.