Comcast has an EV (Enterprise value: Debt + Equity or the 'real' acquisition value of the business) of ~210b versus ~155b for Netflix.
Netflix is now worth more than Comcast
81–90 of 142 posts
Re: Netflix is now worth more than Comcast
#82What's more shocking to me is that Netflix is worth more than Disney. Just look at the list of Disney subsidiaries[1], then look at how bad the average Netflix original movie is and then tell me if the market caps makes any sense at all. [1] https://en.wikipedia.org/wiki/List_of_assets_owned_by_Disney
Similar to my comment below, but Netflix has an EV of 155b relative to ~175b for Disney. So Netflix is smaller but the gap has narrowed considerably.
I'd recommend shorting Netflix if you believe it is significantly overvalued.
Re: Netflix is now worth more than Comcast
#83Earlier quoted context omitted.
I love netflix but have never seen one of their original movies, happy to see them made but that isn't the point of Netflix
> but that isn't the point of Netflix It'll increasingly be as the other content producers feel threatened by Netflix and balkanize their content into their own services. Netflix has to convert to more of an HBO model where they have their own quality originals that bring eyeballs, and they're already on their way towards that.
This, really--Netflix's big push into original content came after their deal with Starz ended and they started to have a harder time licensing movies and shows from studios and other networks, as those entities were trying to build their own services. The 'point' of Netflix is 'have enough available stuff people want to keep paying $12 a month for'.
Re: Netflix is now worth more than Comcast
#84It would make total sense for Netflix to be worth more than Comcast. They provide a worthwhile service while Comcast does not. Netflix provides content, even producing some itself. Comcast does nothing but media distribution. A clever 12 year old can do global media distribution on their free time for free. And do it better than Comcast and other large corporations can. They built their empires when distribution was the hardest problem in the economy by solving that problem. Now, it's one of the most worthless problems to solve. It is right and proper that they shrink, fade, and die. If not for their stranglehold on municipal telecom infrastructure born by government favors, they would have been eliminated long ago.
Re: Netflix is now worth more than Comcast
#85Earlier quoted context omitted.
Comcast has hiked standalone broadband to $75 - http://stopthecap.com/2017/12/21/75-month-broadband-pricing-... Interestingly, you can get a cheaper promotional rate if you bundle local TV channels (cheaper than $75/month for both internet + tv) so Comcast can inflate its video subscriber (to boost their stock price) amount and they hope you forget you're on a promotional rate your bill jumps $30-40 after you drop of…
> Comcast will continue to jack up standalone broadband prices to hedge against fleeing video subscribers. Why? Because they can, and have very little competition in most markets. That's coming from the perspective of an HN reader, for whom wireless isn't "competition." (I get it, I've got two fiber lines to my house; 3 gigabits total. My daughter uses it to stream Magic Schoolbus.) But for the typical user, 5G wirel…
I'd argue that with more than two people in a household and everyone switching to streaming services, you'll need to offer at least 400-500GB data caps for fixed wireless 5G.
Several of my renters are single, and their streaming usage for an individual is ~450GB/month.
Re: Netflix is now worth more than Comcast
#86Comcast has 15 billion in net income last quarter whereas Netflix had 185 million. And PE ratio of comccast is 19 whereas Netflix is 188. In the future where the cord cutting trend continues and Netflix gains tons of subscribers the valuation might make sense. But for now, I feel this looks like very overvalued.
Comcast's net profits per subscription is $5 per month. So Comcast on an average makes $60 profit per subscriber. I will not be surprised if Netflix would hit that goal in next 2 years or so. After all profits is what matters and not net income. Comcast has to employ thousands of support people in India, thousands of technicians all across the USA, cut deals with city administrations, ply those cable lying vans and w…
Billions of dollars of earnings per quarter is "very little profits" -- okay. If that's too little on account of costs, Comcast can feel free to find ways to reduce costs or innovate, you know, like Netflix.
Re: Netflix is now worth more than Comcast
#87Comcast has 15 billion in net income last quarter whereas Netflix had 185 million. And PE ratio of comccast is 19 whereas Netflix is 188. In the future where the cord cutting trend continues and Netflix gains tons of subscribers the valuation might make sense. But for now, I feel this looks like very overvalued.
The market values the future not the present. Heard this argument about Amazon going back over 10 years. I've come to the conclusion that when a general consensus is that stock XYZ is overvalued, its usually a great buy.
That's called survival bias.
Re: Netflix is now worth more than Comcast
#88Earlier quoted context omitted.
Comcast has a very capital-heavy business, and their biggest competitor is the cell network. They have poor customer sentiment, and their existing capital is an aging dinosaur waiting to die.
I would think delivering content over the internet point to point would be more expensive than cable since cable is multicast. Netflix has higher marginal cost and Comcast has higher fixed costs that can be spread among more customers.
Comcast has to constantly transmit all the channels, no matter who's watching. And their fixed costs are rather large. How many thousands of $$ does it cost to put up & maintain a single street's worth of cable? And how much can you recoup from that, especially when you have a massively variable amount of money coming from each customer (including 0 for those on the street who don't subscribe). Plus the license fees for all those channels..
Netflix can also multi-home closer to their customers to reduce bandwidth costs. Comcast is stuck burying cable.
Re: Netflix is now worth more than Comcast
#89Earlier quoted context omitted.
The whole idea of "cord cutting" hurting cable is insane. If you don't subscribe to cable and you subscribe to internet based streaming services, you're still getting content delivered to your home via either a cable "cord" or the phone company. Netflix at most gets $12/month per subscriber. Comcast will get $80 - $110/month for internet service. Comcaast also has either no competitors in their market or at most one.…
Comcast has a very capital-heavy business, and their biggest competitor is the cell network. They have poor customer sentiment, and their existing capital is an aging dinosaur waiting to die.
> and their biggest competitor is the cell network.
This! Mobile data plans will make WiFi and cables obsolete.
Re: Netflix is now worth more than Comcast
#90Earlier quoted context omitted.
The whole idea of "cord cutting" hurting cable is insane. If you don't subscribe to cable and you subscribe to internet based streaming services, you're still getting content delivered to your home via either a cable "cord" or the phone company. Netflix at most gets $12/month per subscriber. Comcast will get $80 - $110/month for internet service. Comcaast also has either no competitors in their market or at most one.…
One difference with cord-cutting vs. Comcast (et al) is that I have no idea how to watch sports on broadcast unless I come across it randomly channel surfing. That is, for me, it's not about money so much as control over distractions in my home. People have been clamoring for a la carte cable for years if not decades, and since the cable services either decline or are unable to provide this, technology finds a way. T…
One difference with cord-cutting vs. Comcast (et al) is that I have no idea how to watch sports on broadcast unless I come across it randomly channel surfing.
In 2018, why the heck is it that I can't click on something to indicate, "I want to watch this," then I get a notification when it airs, and have a list of shows/events now available to watch? If media companies want their advertisements to be worthwhile, why don't they get their act together and do this?