Core Viewpoint - The entertainment sector is led by Netflix, which has a market cap exceeding 400billion,significantlyhigherthanitsclosestcompetitor,WaltDisney,at152 billion. However, other companies like FuboTV may present long-term investment opportunities [1]. Group 1: FuboTV Overview - FuboTV is recognized for streaming live sporting events and has recently partnered with Disney, gaining control over Hulu+ Live TV and adding ESPN content, while Disney acquires 70% ownership in Fubo [3]. - FuboTV ended 2024 with approximately 1.7 million subscribers in North America, marking a 4% year-over-year increase, and generated record-high revenue of 1.62billion,a19176.1 million in 2024, although this was an improvement from a net loss of 287.9millionin2023[5].Group2:NetflixOverview−Netflixreportedastrongfirst−quarterearningsgrowthof1310.5 billion in revenue and a net income of 2.9billion,upfrom2.3 billion the previous year [6]. - In 2024, Netflix achieved 39billioninsales,a168.7 billion, a 61% increase over 2023 [7]. - The company anticipates revenue of at least 43.5billionin2025,continuingitstrendofdouble−digitgrowth[9].Group3:InvestmentComparison−FuboTV′sprice−to−sales(P/S)ratioisbelow1,indicatingthatinvestorsarepayinglessthan1 for every $1 of revenue, suggesting the stock is undervalued [10][12]. - In contrast, Netflix's P/S ratio has increased over time, indicating a higher valuation, but FuboTV's low valuation is attributed to its high subscriber-related costs, which accounted for 84% of its 2024 sales [12][14]. - Netflix's cost of revenue was 54% of total sales in 2024, reflecting a more favorable economic position compared to FuboTV [14].
Netflix(NFLX) The Motley Fool·2025-04-24 12:33