Market Overview

BTIG Says Not All Subscribers Are Created Equal When Comparing Netflix To HBO

Related NFLX
6 Ways Blockchain Could Change The World
Early Global News: Ebola In Liberia, Boeing To Roll Out 737 MAX Next Month, Google Testing SMS Alerts
The retail sector heads into Black Friday with a $2 gas tailwind (Seeking Alpha)

As Netflix's (NASDAQ: NFLX) stock broke the $400 mark in February, BTIG published a blog regarding the implied value of HBO relative to the market value of Netflix.

The question raised by the blog was does it make sense for HBO to be valued around $26 billion as part of Time Warner (NYSE: TWX) while Netflix is valued around $25 billion.

On Wednesday, Netflix's Reed Hastings made a Facebook post stating that Netflix reported higher revenues than HBO for the first time ever.

Following the post, BTIG released a note Thursday stating the values for HBO and Netflix are now around $30 billion and $26 billion, respectively, as Time Warner shares have climbed in the mid-teens since the blog.

BTIG commented, "While many have pointed to the global subscriber disparity in analyzing the relative market value of Netflix and HBO, we must remember that not all subs are created equally."

Additionally, BTIG noted that the common response to Hasting's post has been "so what, HBO is far more profitable."

Latest Ratings for NFLX

Oct 2015JP MorganMaintainsOverweight
Oct 2015Credit SuisseMaintainsNeutral
Oct 2015FBR CapitalMaintainsOutperform

View More Analyst Ratings for NFLX
View the Latest Analyst Ratings

Posted-In: BTIG ResearchAnalyst Color News Analyst Ratings


Related Articles (NFLX + TWX)

View Comments and Join the Discussion!

Get Benzinga's Newsletters