Netflix value skyrockets amid COVID-19 stay at home orders
Netflix has skyrocketed in terms of its value, with the global COVID-19 crisis to thank.
As more countries and states issue stay at home and lockdown orders, the streaming giant has seen its value skyrocket to $192.52 billion as of April 16, 2020.
The World Health Organisation declared COVID-19 a pandemic on March 11, 2020. Almost immediately, stock markets plunged, and many companies around the world have since struggled to make ends meet.
According to KilltheCableBill.com, in the United States, Cinemark has laid off workers and AMC Theatres are rumoured to be looking into filing bankruptcy.
"Despite its hit streaming service, Disney+, Disney has been hit hard after being forced to close down all its parks. Big Cable, which was already hemorrhaging subscribers in the face of cord cutting, is looking at potentially facing even bigger losses in the face of cancelled live sports according to recent surveys," the site says.
As people are forced to stay home and forego normal choices for entertainment, streaming has boomed. U.S. internet video viewing was up 109% year-over-year in March 2020, according to Nielsen data.
The company that has benefited most? Netflix.
KilltheCableBill.com says that on the day WHO declared the pandemic, Netflix was worth $153.55 billion.
"The company sunk to a low $131.13 billion on March 16th, which was the day the stock market hit the bottom thus far. However, since then, as states began to issue stay at home orders, streaming has boomed. And as streaming hours increased, Netflix’s value has skyrocketed to $192.52 billion as of April 16, 2020. That’s about a 25% increase since the day WHO declared the pandemic," it says.
That means the value of Netflix has risen $39 billion since the pandemic declaration. And since the low so far on March 16th, Netflix’s value has skyrocketed $61.39 billion.
On March 11th, Netflix stock was worth $349.92 per share. The stock hit a low on March 16th at $298.84. As of April 16th, that means since WHO declared the pandemic, Netflix stock has risen approximately $88 per share. And since the bottom of the market thus far on March 16th, the stock has soared by $139, KilltheCableBill.com says.
According to a recent report from Variety, Netflix, which has hit an all-time high stock price, is now worth more than Disney. The company is scheduled to report Q1 earnings on April 21 and is expected to beat forecast total net ads.
Pivotal Research Group now expects Netflix to net 8.45 million new subscribers for Q1.
KilltheCableBill.com adds, "Simply put, as more people stay home, more people subscribe or maintain their subscriptions."