Netflix shares have been under significant pressure, down 27% since second-quarters earnings (versus the SPX, flat), including down 12% over the past seven trading days (versus the SPX, down 1%). Recent weakness reflects 1) increased concern around third-quarter net adds, especially in international markets, 2) heightened competition heading toward year end and into 2020 from Disney+, Apple TV+, HBO Max, etc., and fears of content inflation. It is indeed a different operating environment for Netflix going forward, one in which streaming becomes more populated by large, well-funded players, some of which are more closely controlling their content distribution. Read More...
Netflix shares have been under significant pressure, down 27% since second-quarters earnings (versus the SPX, flat), including down 12% over the past seven trading days (versus the SPX, down 1%). Recent weakness reflects 1) increased concern around third-quarter net adds, especially in international markets, 2) heightened competition heading toward year end and into 2020 from Disney+, Apple TV+, HBO Max, etc., and fears of content inflation. It is indeed a different operating environment for Netflix going forward, one in which streaming becomes more populated by large, well-funded players, some of which are more closely controlling their content distribution.
Add Comment