Aug. 5 at 10:50 AM
$DIS Netflix's last report demonstrates that
$DIS no longer deserves to be cheap. Disney+, Fubo, Hulu Live, ESPN, Epic Games, buybacks, earnings distorted by taxes & onetime hits. The market is valuing
$NFLX clean present and Disney's messy transition. Remove
$NFLX WBD acquisition failure cash buff and normalize Disney's wildfire-related tax timing & acquisition success charges,
$NFLX no longer financially towers over
$DIS & at twice the market cap, looks aggressive. Most of all Netflix's own strategy is the strongest supporting evidence! Disney already owns that broader machine, yet trades at the lower multiple.