Shares of Netflix Inc. rallied 2.9% in afternoon trading Wednesday, putting them on track to close at a 5 1/2-month high, after BofA Securities said a proprietary survey of streaming video service users indicated the introduction of Walt Disney Co. rival Disney+ service won't be much of a drag on subscriber growth. Netflix's stock has now run up 8.8% amid a four-day win streak. Analyst Nat Schindler said the survey indicated that the overall cancellation intention for Netflix has declined to 4% from the 5% seen during the October survey, suggesting limited Disney+ impact. Schindler said there is some indication that Disney+ could be drawing in new users to subscription video on demand, which could be a positive for Netflix. "Our survey and company reports suggest healthy U.S. adoption of Disney+, but we are encouraged that most early Disney+ users do not see it as a substitute for Netflix," Schindler wrote in a note to clients. He reiterated his buy rating and $426 price target on Netflix. Netflix's stock has run up 11.2% since Nov. 12, when Disney+ launched, while Disney shares have gained 5.7% and the Dow Jones Industrial Average has tacked 2.2%. Read More...
Shares of Netflix Inc. rallied 2.9% in afternoon trading Wednesday, putting them on track to close at a 5 1/2-month high, after BofA Securities said a proprietary survey of streaming video service users indicated the introduction of Walt Disney Co. rival Disney+ service won’t be much of a drag on subscriber growth. Netflix’s stock has now run up 8.8% amid a four-day win streak. Analyst Nat Schindler said the survey indicated that the overall cancellation intention for Netflix has declined to 4% from the 5% seen during the October survey, suggesting limited Disney+ impact. Schindler said there is some indication that Disney+ could be drawing in new users to subscription video on demand, which could be a positive for Netflix. “Our survey and company reports suggest healthy U.S. adoption of Disney+, but we are encouraged that most early Disney+ users do not see it as a substitute for Netflix,” Schindler wrote in a note to clients. He reiterated his buy rating and $426 price target on Netflix. Netflix’s stock has run up 11.2% since Nov. 12, when Disney+ launched, while Disney shares have gained 5.7% and the Dow Jones Industrial Average has tacked 2.2%.
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