Netflix stock sinks after earnings report

Netflix stock sinks after earnings report

Disney has announced that its highly anticipated streaming service, which is set to take on the likes of Netflix and Amazon, would launch in the U.S. on November 12.

In its earnings release, Netflix shared it now has nearly 149m subscribers globally, up almost 10m from last quarter.

Netflix's performance may help ease any worries related to a recent price hike that raised the cost of its most popular plan to $13 a month, a $2 increase.

Getting new subscribers in India: Netflix said a lower price tier will be important to adding members in India, although its not positive that a mobile-only lower price tier model is the right one for India.

"There is some concern that real competition is entering the market, but Netflix is still a good proxy for investor risk appetite, especially for technology", said Joel Kulina, Senior Vice President of Institutional Cash Equities at Wedbush Securities.

CNBC reports that Deutsche Bank is raising its rating on Netflix shares to buy from hold, as the bank stated that Netflix was becoming "more like a platform every day", rather than a standalone app or website. Analysts on average had expected revenue of $4.50 billion.

Netflix also shed some light on the audience figures for Umbrella Academy, one of its highest profile original releases during the quarter. Analysts on average were expecting 57 United States cents a share.

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The Netflix stock has been up about 30 per cent since the beginning of the year, closing at $359.46 Tuesday.

There's plenty to be excited about ahead of the streaming service's November launch and Disney promises that it will rapidly expand globally following its US debut.

John Meyer, analyst at the investment firm Transpire Ventures, said Netflix still has the upper hand in the market.

The company has produced a number of critically acclaimed films and series including The Crown and the Oscar-nominated Roma. The $6.99 per month price point won't hurt either.

For years, investors have rewarded Netflix for spending ever-larger sums of money on new shows, confident in the company's assertions that those investments are yielding new customers.

Anxious you won't have a device that'll support Disney's new streaming service? The Marvel shows on Disney+, however, will be overseen by Feige himself, and will be "major storylines set in the MCU with ramifications that will be felt both through the other Disney+ series we'll be producing and the future on the big screen", according to the MCU architect.

"We don't anticipate that these new entrants will materially affect our growth because the transition from linear to on-demand entertainment is so massive and because of the differing nature of our content offerings", it wrote in a letter to shareholders.

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