NFLX & DIS

Down over 40% from the high, trading at $400 / share for a market cap of $175B or so.

TTM Revenue is
7.5B
7.3B
7.2B
6.6B

28.6B → 6x revenue

Not cheap but not super crazy either. They have shown the ability to raise prices in the past; but are also facing more competition now. I am sort of on the fence… I am also looking at DIS which is also trading a significant discount to recent prices (-25%).

DIS TTM
18.5B
17.0B
15.6B
16.2B

67.3B → 3.7x revenue. In addition, DIS seems capable of earning around $7 / share of profit if things go well (they earned $8.36 in 2018), which would put the PE at $135/7 under 20x

tecmo

6 Likes

Disney reported earnings today and the stock is responding well up about 10% after hours.

https://www.cnbc.com/2022/02/09/disney-dis-fiscal-q1-2022-ea…

They earned $1.06 in the quarter and their subscription business is still growing nicely. I love it when a plan works out (even if this is short term).

tecmo

2 Likes