If you thought it was just Netflix struggling on the stock market, take a look at the other streamers and you’ll see a similar pattern. The following article is not financial advice and you should speak with a financial planner if you are so inclined but we certainly do want to cover the news on these entertainment companies:
The companies behind the largest streaming services out there are taking just a brutal, brutal beating in terms of their stock values this month. I’m no financial expert and I don’t know how much of this is related to cultural backlash… or the S&P 500… or inflation… or anything else… but I do know that this has to have Board Rooms across the entertainment industry calling some special meetings. Here are the stats:
As of publication, Netflix had lost more than 50% of its valuation in just a single month:
While Netflix dropped all at once in the last month, Disney has been on a multi-year slide. However, in just the last six months, Disney has lost 36%. What is more scary for The Walt Disney Company is that they have a big quarterly earnings report on May 11th… so could they be facing a Netflix situation?
Paramount is in a much better position, only losing about 1% of their stock value in the last six months. That’s on fairly solid numbers coming out for their streaming service, Paramount+, which revealed they had grown to 62 million subscribers. That’s not great in comparison to Disney+ and Netflix, but it’s also solid growth. Their stock may have wobbled after the announcement, but it didn’t drop into dangerous territory
Though Paramount is far smaller than the other two major streamers in terms of assets and value, they are competing directly with Warner Bros. In that regard, they’re definitely outplaying WBD as they’re on a 27% slide over the last six months:
With all of these streaming companies dropping so severely, far beyond the market’s contraction, one has to start wondering… is the streaming bubble about to burst? Or is it already taking place?
For all the latest news that should be fun, keep checking out That Park Place! If you’d like to give your take on the streaming economic situation, drop a comment down below.
Editor’s Note: This article has been updated due to an incorrect stock display and link. Thank you to BeatCal for bringing this to our attention! We greatly appreciate when our readers help us recognize an error — our goal is always to be as accurate as possible. In this case it was a major flaw.
