NFLX - Netflix, Inc.
| Previous Close | 296.93 |
| Open | 295.00 |
| Bid | 290.75 x 1300 |
| Ask | 291.40 x 900 |
| Day's Range | 290.34 - 299.00 |
| 52 Week Range | 231.23 - 386.80 |
| Volume | 6,331,189 |
| Avg. Volume | 6,941,292 |
| Market Cap | 127.603B |
| Beta (3Y Monthly) | 1.36 |
| PE Ratio (TTM) | 114.74 |
| EPS (TTM) | 2.54 |
| Earnings Date | Oct 14, 2019 - Oct 18, 2019 |
| Forward Dividend & Yield | N/A (N/A) |
| Ex-Dividend Date | N/A |
| 1y Target Est | 388.40 |
- Market Realist
Video Streaming: Netflix Faces Fierce Competition
Competition taking a toll on Netflix as its share of US subscription video streaming market keep falling as rivals gain ground.
- CNW Group
SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in Netflix, Inc. of Class Action Lawsuit and Upcoming Deadline - NFLX
If you are a shareholder who purchased Netflix securities during the class period, you have until, September 20, 2019 , to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980.
- Bloomberg
Obama-Backed Film Offers a Sobering Take on U.S.-China Rivalry
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. The trade battles between China and the U.S. are often discussed as sterile policy matters. But every so often a tale like “American Factory,” a documentary that debuted on Netflix this week, serves as a reminder that people and complexities are involved.“American Factory,” the first film backed by Barack and Michelle Obama’s new production company, tells the unvarnished story of a shuttered General Motors plant outside Dayton, Ohio, bought and revived as an auto glass factory by China’s Fuyao Glass.The film’s political relevance comes from the fact the new factory opened in October 2016, just weeks before Donald Trump was elected wielding a campaign promise to stunt China’s economic rise that has since turned into a trade war convulsing the global economy. But what makes it compelling is that what begins as an optimistic story of revival ends up as a tangled one about a clash of cultures and the powerful and perplexing forces of globalization and automation.The fact that the first film issued by the Obamas’ new production company as part of a partnership with Netflix is about the economic relationship between two powers struggling to figure out how to co-exist may raise eyebrows among the current team in the White House. At the very least it offers a nuanced counterpoint to Trump’s proclamation that trade wars are “easy to win.”“I think one of the things that makes the movie powerful is the fact that it’s not all black and white. There’s a bunch of gray,” Barack Obama says in a short interview with “American Factory” directors Julia Reichert and Steven Bognar issued with the film.The film is, above all, good at capturing unguarded moments featuring its Chinese characters.Changing Views“The most important thing is not how much money we earn, but how this will change Americans’ view of the Chinese and toward China,” Fuyao’s billionaire chairman, Cao Dewang, tells a group of Chinese workers brought in to help set up the factory a half-hour into the film.Regardless of that proclamation the cultural clash on show is often raw. “They are pretty slow. They have fat fingers,” one Chinese manager complains early on as he leads Cao past a line of American workers.“The Chinese really don’t help us out. They just walk around and tell the Americans what to do,” an American employee complains later as tensions threaten to boil over.During a visit by a small group of American managers to Fuyao’s headquarters in China the camera captures a conversation between a Chinese supervisor and his Chinese-speaking American counterpart from the Dayton factory.“You guys have eight days off every month. You have all the weekends,” the Chinese supervisor complains, pointing out that the workers laboring nearby get only a day or two off per month.American executives and supervisors recruited to run the Ohio plant are eventually replaced with Chinese managers more attuned to Cao’s ruthless demands for efficiency and profit and his bristling at the idea of his workforce becoming unionized.Shortly after he makes the change, Cao offers that he has grown more suspicious of the land he has invested in. “We hired Americans to work as our managers and supervisors. Our expectation was that we could trust them, pay them a high salary and they would serve the company. Why didn’t they? I think they are hostile to Chinese,” he tells the filmmakers.There are heartwarming and even hopeful moments in “American Factory." Rob, a furnace supervisor, invites a dozen Chinese Fuyao employees over for Thanksgiving dinner at his rural home, letting them pose with his guns and giving the brave ones rides on his Harley. “They talked about it forever. That made me happy,” he says.But underlying it all are also harsh economic realities. By the end of the film Rob has been fired for taking too long to call up information on a computer. And the executive leading Cao through a factory being transformed yet again is laying out in cruel detail how and when new robots will be replacing the workers nearby.“This one is being tested now. We’re hoping to cancel four workers in July and August,” he says. “I’ll change that into machine work. We can’t get the work done now. They are too slow.”Which sends another message about the current trade wars. All the tariffs and tussling over soybeans and supply chains may be missing a bigger transformation underway in the global economy. One that, as the film makes clear in its closing frames, is likely to hit both American and Chinese factory workers alike.To contact the reporter on this story: Shawn Donnan in Washington at sdonnan@bloomberg.netTo contact the editors responsible for this story: Simon Kennedy at skennedy4@bloomberg.net, Sarah McGregor, Brendan MurrayFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Barrons.com
Roku Is a Cord Cutter’s Dream. It’s Working for Investors, Too
Traditional pay-TV services are shedding subscribers because video streaming is more convenient, offers more choice, and, at least for now, a better value. As Netflix (ticker: NFLX), Apple (AAPL), (DIS) (DIS), (CMCSA)(CMCSA), and other heavyweights battle it out, the best way to play streaming is turning out to be upstart (ROKU) (ROKU). The company’s combination of hardware and software enables consumers to watch content streamed over the internet.
- ACCESSWIRE
FILING DEADLINE--Kuznicki Law PLLC Announces Class Actions on Behalf of Shareholders of NFLX, EGBN and GVA
CEDARHURST, NY / ACCESSWIRE / August 23, 2019 / The securities litigation law firm of Kuznicki Law PLLC issues the following notice on behalf of shareholders of the following publicly traded companies. Shareholders who purchased shares in these companies during the dates listed below are encouraged to contact the firm regarding possible appointment as lead plaintiff and a preliminary estimate of their recoverable losses. If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court.
- GlobeNewswire
Helius Medical Technologies, Inc. (HSDT), Ideanomics Inc. (IDEX) & Netflix, Inc. (NFLX) –Bronstein, Gewirtz & Grossman, LLC - Class Action Update
Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC reminds investors that a class action lawsuit has been filed against the following publicly-traded companies. You can review a copy of the Complaints by visiting the links below or you may contact Peretz Bronstein, Esq. If you suffered a loss, you can request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
- Market Realist
Is Netflix Losing Its Edge? Stock Continues to Slide
Since Netflix posted its Q2 results, its stock has fallen 18%. Could the streaming giant lose its disruptor position as new players enter the market?
- Market Realist
Vanguard, Capital Research Buy More Netflix Stock
The Vanguard Group, Capital Research Global Investors, and BlackRock Institutional Trust all raised their holdings in Netflix stock in the second quarter.
- ACCESSWIRE
CLASS ACTION UPDATE for STG, NFLX and GTT: Levi & Korsinsky, LLP Reminds Investors of Class Actions on Behalf of Shareholders
NEW YORK, NY / ACCESSWIRE / August 23, 2019 / Levi & Korsinsky, LLP announces that class action lawsuits have commenced on behalf of shareholders of the following publicly-traded companies. To determine ...
- ACCESSWIRE
Helius Medical Technologies, Inc. (HSDT), Ideanomics Inc. (IDEX) & Netflix, Inc. (NFLX) -Bronstein, Gewirtz & Grossman, LLC - Class Action Reminder
NEW YORK, NY / ACCESSWIRE / August 23, 2019 / Bronstein, Gewirtz & Grossman, LLC reminds investors that a class action lawsuit has been filed against the following publicly-traded companies. You can review a copy of the Complaints by visiting the links below or you may contact Peretz Bronstein, Esq. If you suffered a loss, you can request that the Court appoint you as lead plaintiff.
- GlobeNewswire
SHAREHOLDER ALERT: FRED NFLX JE VAL: The Law Offices of Vincent Wong Reminds Investors of Important Class Action Deadlines
NEW YORK, Aug. 23, 2019 -- The Law Offices of Vincent Wong announce that class actions have commenced on behalf of shareholders of the following companies. If you suffered a.
- InvestorPlace
Roku Stock Needs a Recession
I was only temporarily right about over-the-top streaming device manufacturer Roku (NASDAQ:ROKU). Back near mid-July, I had reservations about the ROKU stock price. It had more than tripled in market value since January's opening volley. Naturally, I felt that a healthy correction was in order.Source: Michael Vi / Shutterstock.com Shortly after I wrote my cautionary tale, the ROKU stock price cooled like clockwork. At one point earlier this month, shares closed below the psychologically important $100 level. Although I was right on paper, I must admit I was wrong on the reason why.Last month, I had stressed that ROKU was fundamentally stretched. Clearly, extreme enthusiasm had taken over Roku stock. In my view, the company deserved a premium valuation, but not that rich.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut when shares of the OTT streaming device maker finally corrected, it was more likely due to broader market weakness from the U.S.-China trade war. In other words, Roku stock declined in sympathy with everyone else. Later, the underlying company released its earnings report for the second quarter, and shares were back onto the races. * 10 Marijuana Stocks That Could See 100% Gains, If Not More By most accounts, the OTT provider delivered stunning results. For one thing, the company brought home 30.5 million subscribers overall, representing nearly 39% growth from the year-ago quarter. That was also the first time the company breached the 30 million barrier, a nice excuse to pump up the ROKU stock price.Further, the device and smart-TV maker rang up $250.1 million in revenue, obliterating estimates calling for $224.2 million.Now, I could probably nitpick something, like year-over-year subscription growth being in a downtrend since Q3 2017. But why bother when we're headed toward a recession? ROKU Offers a Compelling Recession-Proof ArgumentLet me back up for a second. I'm not suggesting that a recession is guaranteed. Perhaps, President Donald Trump's administration has a secret formula that could substantively improve the economy.However, I base my pensiveness on the yield curve inversion. For multiple times this month, the yield on shorter-dated U.S. Department of Treasury bonds have jumped past yields of longer-dated Treasuries. Stated differently, investors are receiving less reward for taking on more time-based risks.Truly, this is a nonsensical dynamic, and it worries me on many levels. Logically, the equity markets may absorb some volatility. If anything, they will do so out of sheer uncertainty.But as a contrarian, I think Roku stock suddenly looks very interesting. Don't get me wrong, it was probably always interesting. But ROKU is one of the few growth stocks that might offer some safe haven in a downturn.Why? I'm banking on the consistency of human psychology. A decade ago during the Great Recession, the box office performed surprisingly well. Hollywood offered escapism at a cheap price.It was the same story back about 90 years ago. One of the most enduring images of the Great Depression is bankers jumping from tall buildings. But those who decided to tough it out had some help from the then-burgeoning movie industry. It brought a smile to a desperately hurting nation.While we may not suffer such a severe trauma, a downturn will certainly necessitate some downtime. As a low-cost distraction, nothing beats Roku's OTT streaming products and services.As you know, the company's flagship products are their streaming devices. Offering a wide range of performance specs, you pay only $25 for the cheapest. And unless you decide to fork over for premium content like Netflix (NASDAQ:NFLX), that's all you'll pay. How to Play Roku StockStill, despite Roku's potential resilience during a recession, I wouldn't go too crazy. The reason is that we should all respect the tape. Again, with the yield curve inversion, the major indices risk significant volatility in the future. In that context all names, irrespective of their individual strengths, face some threat.Therefore, I'm bullish on Roku stock, but not necessarily at this price. I'd like to see at least one healthy correction before considering shares. But when that time comes, the present environment is supportive of the OTT device maker. It provides a relevant service at a price that you just can't beat.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks That Could See 100% Gains, If Not More * 11 Stocks Under $10 to Buy Now * 6 China Stocks to Buy on the Dip The post Roku Stock Needs a Recession appeared first on InvestorPlace.
- Investopedia
Netflix vs. Hulu vs. Apple TV: What's the Difference?
The fight to lead internet streaming services is getting tighter, with Netflix and Hulu leading the pack, while Apple TV offers viewers a set-top box.
- Motley Fool
Here's Why Netflix's Subscriber Growth Will Rebound in Q3
This isn't the first time the streaming giant has whiffed on subscriber numbers, and it doesn't mean the sky is falling.
- Investopedia
Banker's Remarks Roil Markets, but Buyers Respond
Volatility shook traders out of Facebook, while investors might think that Boeing's bad times are behind it.
- American City Business Journals
Streaming roundup: Netflix dominance eroding amid Hulu, Amazon subscriber gains
Netflix is still far and away the most dominant player in the streaming industry. But the streaming platform is slipping in U.S. market share to rivals Amazon and Hulu.
- InvestorPlace
Here’s Why Netflix Stock Might Win in the Recession
From a broader view, it's hard not to love Netflix (NASDAQ:NFLX). Starting life originally as a DVD subscription service, the company transitioned to the streaming platform. Since then, it has never looked back, enjoying its first-to-market advantage. Later developments, such as the production of original content, made Netflix stock all the more compelling.Source: Riccosta / Shutterstock.com But recently, this thesis is under severe threat. Last month, Netflix released its second quarter of 2019 earnings report. To say that it was a disappointment would be a grave understatement. While I'm not going to rehash old news, the key metric to focus on is the subscriber count. In the U.S. market, Netflix lost 100,000 subscribers when analysts expected it to gain 300,000. Unsurprisingly, NFLX stock tanked.Further, global net ads measured 2.7 million. This tally was substantially below analyst forecasts for five million. No matter how you break it down, Netflix stock lives on subscriber trends. That it fell short so spectacularly hurt sentiment.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut that's not all. Over the past several months, tech firms and traditional media companies have encroached into Netflix's arena, disrupting the disruptor. Most notably, Disney (NYSE:DIS) will launch its streaming service Disney+ this coming November. That's a double whammy for NFLX stock due to a loss of content and the addition of a rival. * 10 Marijuana Stocks to Ride High on the Farm Bill Furthermore, Disney will offer a bundled plan which encompasses Disney+, ESPN+, and ad-supported Hulu for $13. That's the same price as Netflix's "Standard" Plan.Beyond the Magic Kingdom, names like Comcast (NASDAQ:CMCSA) and Amazon (NASDAQ:AMZN) are aggressively ramping up their streaming inroads. Plus, NFLX is losing the popular show Friends to AT&T's (NYSE:T) WarnerMedia.Is it time to dump Netflix stock? Recession Worries Hits Netflix Stock HardOutside recession fears, I'm inclined to believe that the current fallout in NFLX stock is temporary. And by temporary, I would mean that it's a discounted buying opportunity.But in the past weeks, any optimism toward the U.S.-China trade war has evaporated. Additionally, the yield for 2-year Treasuries again moved above the 10-year yield. This inversion of the yield curve potentially signals a recession, yet the Federal Reserve is not acting decisively.While I don't want to get too wonky, these signs indicate that a recession is more likely than not. As an investment levered to consumer sentiment, this is a bad omen for Netflix stock.Now, the typical retort to this bearish assessment is that even in a downturn, people need entertainment. This is one of the reasons why I think AMC Entertainment (NYSE:AMC) makes a viable contrarian case. Certainly, compared to traditional TV subscriptions, Netflix is dirt cheap. And people will give up almost anything before they give up their internet, which is a digitalized society's lifeblood.Unfortunately, the robust streaming competition presents a new kink to this logic. In a bullish economy, consumers would probably buy two or even three streaming services. Even at $39, for example, this is much cheaper than traditional TV providers' post-introductory subscription specials.But in a recession? That's when consumers will start belt-tightening. They probably won't get rid of streaming altogether. However, they may not unnecessarily bundle competing services. Thus, it becomes a race to see who can offer the best content at the best price.Naturally, this makes stakeholders of Netflix stock nervous, especially after the disastrous Q2 report. Seemingly, subscribers are getting tired of the company's original content. And streaming is known for fickle viewers. The Risky Case for NFLX StockIf push comes to shove, though, I'd gamble that Netflix will rise above the streaming fray. Why? It goes back to original content.Currently, millennials represent the biggest demographic in the U.S. workforce. That probably won't change in a recession. Therefore, the people who are most savvy to streaming content are also the ones earning a paycheck.Ultimately, this benefits Netflix stock because the streaming giant has truly captured the millennial's attention span. When people watch various shows and programs, they're mostly doing so through Netflix.Additionally, NFLX features a wide range of gritty and compelling drama, stuff that millennial subscribers go wild over. And let's not forget that the company has the Midas touch in terms of producing relevant, award-winning content.Of course, I'm not completely crazy. This is still a risky proposition given the Q2 results. But it's not entirely out of the question that Netflix stock can ride out a downturn. Thus, if you want to take a measured gamble, I don't think it's a bad idea.As of this writing, Josh Enomoto is long T and AMC. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post Hereas Why Netflix Stock Might Win in the Recession appeared first on InvestorPlace.
- Investopedia
Pros & Cons Of A Passive Buy And Hold Strategy
Forget market timing: we look at the pros and cons of the tried, tested, and true strategy of buying and holding stocks for the long-term.
- ACCESSWIRE
CLASS ACTION UPDATE for NFLX, KPTI and CAH: Levi & Korsinsky, LLP Reminds Investors of Class Actions on Behalf of Shareholders
NEW YORK, NY / ACCESSWIRE / August 22, 2019 / Levi & Korsinsky, LLP announces that class action lawsuits have commenced on behalf of shareholders of the following publicly-traded companies. To determine ...
- Market Realist
Netflix’s Streaming Dominance Is at a Crossroads, New Shows Coming
Netflix's streaming dominance will face its biggest test this September. Soaring competition is increasingly becoming a threat in the industry.
- TechCrunch
Hulu and Amazon Prime Video chip away at Netflix's dominance
Netflix is still the No. 1 subscription streaming service in the U.S., according to a new report from eMarketer, but rivals, including Amazon Prime Video and Hulu, are starting to cut into its market share. The analyst firm forecasts 182.5 million U.S. consumers will subscribe to over-the-top streaming services this year, or 53.3% of the population. Netflix is still the top choice here, with 158.8 million viewers in 2019, and it is continuing to grow.
- InvestorPlace
Will Disney+ Be the Next Catalyst for DIS Stock?
Disney (NYSE:DIS) stock has an extremely strong global entertainment brand and exciting growth prospects in streaming media. The House of Mouse has shown robust performance in 2019, and year-to-date, DIS stock is up about 24%.Source: ilikeyellow / Shutterstock.com However, August has not been a good month for Disney shareholders so far. And there will likely be further volatility and some profit-taking in the coming weeks. Therefore investors may want to consider waiting on the sidelines if they do not currently have any positions open in Disney stock.Alternatively, if they already own Disney, investors may either consider taking some money off the table or hedging their positions. As for hedging strategies, covered calls or put spreads with Sep. 20 or Oct. 18 expiry could be appropriate. Any short-term decline in DIS stock may offer a better entry point for long-term investors.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Disney Stock's Q3 EarningsOn Aug. 6, Disney stock reported earnings for the third quarter of fiscal 2019. It logged revenues of $20.25 billion on earnings per share of $1.25. However, DIS stock missed on both revenue and net income. * The 10 Best Marijuana Stocks to Buy Now Disney blamed the Q3 earnings miss on the current integration of Fox Corporation's entertainment assets, which it had acquired earlier in the year for $71 billion.Four segments contribute to Disney's revenue: * Media Networks (such as ABC and ESPN; about 33% of revenue) * Parks, Experiences and Products (such as Disneyland and cruise lines; about 30% of revenue) * Studio Entertainment (including Lucasfilm and Marvel; about 19% of revenue) * Direct-to-Consumer & International (including streaming services and advertising; about 18% of revenue)Results from Disney's operating segments varied. Media Networks unit reported revenue of $6.7 billion, showing a 21% year-over-year increase.Parks, Experiences and Products's revenue came at $6.6 billion during the quarter, with a 7% rise from Q3 2018. Nonetheless, analysts were concerned that there was lower attendance at Disney parks overall.Studio Entertainment segment reported revenue of $3.8 billion, a 33% increase from the same period one year ago. But this isn't a surprise. Most of our readers will be familiar with the fact that a number of Disney's movies have done extremely well in 2019.Direct-to-Consumer & International segment saw revenue of $3.86 billion during the quarter. However, its operating losses increased to $553 million from $168 million. The company blamed the losses on increased investments in ESPN+, Disney+ and Hulu streaming services.In August, Wall Street wanted to see whether the group's diversified revenue streams would remain robust for the second half of 2019. However, the quarterly report raised eyebrows and the stock price since then has been reflecting investors' worries. Content Development Will Be Expensive for DIS StockDisney's third-quarter results highlighted an important headwind that the company is facing in the rest of the year, i.e., increased costs.During the conference call, Disney management said that direct-to-consumer losses are likely to rise to $900 million in the fiscal Q4. The group will continues to invest in content for Disney+ as well as ESPN+ and Hulu.Disney+ will launch in November and feature content from various sources, including Disney, Pixar, Marvel, Star Wars. In the U.S., the service, which is likely to appeal to a wide range of viewers, will cost $6.99 a month or $69.99 a year. And the global launch of Disney+ will start in early 2020.Disney will offer U.S. consumers a bundle of Disney+, ESPN+ and an ad-supported Hulu subscription for $12.99 per month. Incidentally, that would be the same cost as Netflix's (NASDAQ:NFLX) standard subscription plan.Hulu will have have mostly adult content as opposed to Disney+, which will focus on kids and will not feature any R-rated movies. The bundle will launch alongside Disney+ on Nov 12. CEO Bob Iger said that Disney+ is not likely to have as much content as Netflix, which may become an important concern for investors, especially in the short run.All of these exciting developments in the streaming space have begun to cost Disney real money. Disney management has to ensure that the technical backbone of the streaming services works well. It also has to create content to keep the subscribers happy.Another way to think about the cost of producing original content is that until now, Disney was making money selling content to Netflix. Now it may have to spend serious cash every year to develop content. Of course, the list of competitors for DIS stock includes Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), and AT&T (NYSE:T), too.Many analysts are also wondering if the streaming space needs this many services. Could there also be a price war around the corner that could benefit the U.S. consumer, but not necessarily the stock price of Disney or of its competitors? Where Disney Stock Price is NowOver the past year, Disney stock price is up about 20%. Prior to 2019, between late 2015 and late 2018, DIS stock had not done much for shareholders as it hovered around the $100 per share level.Let us briefly remember how the stock has traded since early April: On Apr 11, prior to Disney's investor day presentation, the share price closed at $116.60. The next morning, DIS stock gapped up to open at $127.91. Then, on April 29, DIS stock reached what was then an all-time high of $142.37.In early May, Disney stock gave back some of its April gains, mirroring the stock market's volatility. On May 31, the stock saw $130.78. June and July were once again good to shareholders, as the stock reached an all-time high of $147.15 on July 29. Since then, investors have been taking money off the table and Disney stock is hovering around $135.As a result of the recent declines, the technical outlook of Disney stock has been damaged. Its short-term chart still looks weak, and DIS share price looks poised to exhibit even further volatility in the near-term.Despite this recent fall in the price of Disney shares, there might still be further declines. In the next several weeks, I expect DIS stock to be choppy and its price to decline below the $130 level, possibly toward $120. The Bottom Line on DIS stockSo what should investors think about Disney shares right now? The acquisition costs and the direct-to-consumer costs have been considerable. Yet Disney management is at this point ready to rack up losses in the streaming space. They are of course hoping to collect sizeable recurring revenue from subscribers both in the U.S. and worldwide. * 10 Marijuana Stocks That Could See 100% Gains, If Not More Therefore, investors will have to keep an eye on Disney's costs as well as other fundamental metrics in the coming months to see if the long-term prospects are still in place. Several bearish trends have recently been emerging in DIS stock. I'd say hold off investing in Disney shares until we have more data in the coming months. There might be a few more bumpy quarters ahead of us.At the time of writing, the author did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks That Could See 100% Gains, If Not More * 11 Stocks Under $10 to Buy Now * 6 China Stocks to Buy on the Dip The post Will Disney+ Be the Next Catalyst for DIS Stock? appeared first on InvestorPlace.
- InvestorPlace
Netflix Can’t Chill: Too Many Worthy Competitors Are Looming
For a stock that gets as much attention as Netflix (NASDAQ:NFLX), one "minor" detail seems to be going overlooked these days. Down more than 23% from its 52-week high, Netflix stock, believe it or not, is currently mired in a bear market.Source: Riccosta / Shutterstock.com So what's ailing once-beloved Netflix stock? Fortunately, the question is easy to answer, but where things get murky is how well the company is going to answer the query.Much of the recent lethargy in Netflix stock is attributable to rising competition in the streaming space. While it felt like Netflix had the streaming universe mostly to itself for awhile (it did), this landscape isn't one conducive to quasi-monopolies as Amazon (NASDAQ:AMZN) has in online retail or as Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) has in Internet search.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Marijuana Stocks That Could See 100% Gains, If Not More Every day, companies in all industries contend with rivals. Often, the results of the tussles boil down to quality of the competitors and how deep their pockets are. That's some of the bear thesis with Netflix stock. Streaming rivals include Amazon, Apple (NASDAQ:AAPL) and Walt Disney (NYSE:DIS). All three are or will soon make significant streaming strides and they have the resources to pinch Netflix.Competition could beget more lost subscribers, long the bane of Netflix stock. Explaining why Netflix stock has struggled since its second-quarter earnings report just over a month boils down to the 126,000 lost domestic subscribers when Wall Street was expecting the addition of 352,000. The 2.8 million international additions were overshadowed due to that number missing estimates by two million. There's Hope for NFLX Stock … Sort OfYes, there's a bull case for Netflix stock, but investors willing to exercise some restraint may be able to get pricing than they see today for a couple of reasons. First, some of the aforementioned competition, such as Disney+, is coming soon, and as companies update on that front, Netflix stock could be dinged. Second, the chart on Netflix is not attractive from the long side.While investors may be lacking enthusiasm for NFLX stock at the moment, some data points indicate subscribers may be renewing affinity for the streaming provider's wares."It's still early in the quarter, but data through July looks solid (rebound from 2Q)," said SunTrust Robinson Humphrey analyst Matthew Thornton in a recent note. "Google searches (on keyword "Netflix") and mobile app downloads for the month also show nice upticks vs 2Q19 and back toward or above the 1Q19 high-water-mark."New content could be a catalyst for Netflix stock, but there are costs associated with that and NFLX has a history of losing money. Plus, the company's cancellation track record confirms it's more likely to make a new dud than another "Orange Is the New Black." Bottom Line on Netflix: Fierce CompetitionIn its early days, Netflix had pricing power, which enabled it to raise subscription fees without much churn. But with an onslaught of new competitors in the streaming world, pricing power is diminishing."Larger firms like Disney and WarnerMedia are launching their own SVOD platforms to compete against Netflix," said Morningstar in a recent note. "We think this usage pattern and increased competition will constrain Netflix's ability to raise prices without inducing greater churn."The research firm notes that while admirable, international expansion efforts by Netflix carry no competitive advantage, because its global and local rivals can adjust their own content budgets to go head-to-head with Netflix.Thanks to companies like Roku (NASDAQ:ROKU) that are driving pay TV prices lower through over-the-top delivery, Netflix may not be able to apply much more upside pressure to its $13 a month base subscription fee. In lieu of significant subscriber growth, lost pricing power is a headwind for NFLX stock that must be acknowledged.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks That Could See 100% Gains, If Not More * 11 Stocks Under $10 to Buy Now * 6 China Stocks to Buy on the Dip The post Netflix Can't Chill: Too Many Worthy Competitors Are Looming appeared first on InvestorPlace.
- InvestorPlace
Square Stock Will Eventually Move Much Higher, But Don’t Buy It Yet
Square (NYSE:SQ) stock has struggled in recent trading sessions. Weaker than expected third-quarter results, reported on Aug. 1, sent SQ stock plunging. Moreover, fears about the overall economy have put further pressure on the equity.Source: Shutterstock However, amid these shorter-term struggles, SQ has shown the potential to become the most transformative company in tech since Netflix (NASDAQ:NFLX). Netflix destroyed video stores and blunted the growth of pay-TV. In the same manner, Square's ecosystem could present a tough challenge to both traditional and newer financial-services firms. * 10 Marijuana Stocks That Could See 100% Gains, If Not More SQ Stock Will Probably Suffer in the Shorter TermThe inverted yield curve has stoked fears of a recession. It has also left the market with numerous stocks that look appealing in the long-run but could also hammer investors in the shorter-term. Few equities illustrate that dynamic better than SQ stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe day after its Aug. 1 earnings report, SQ stock fell by 14% as the company delivered what some described as "light earnings guidance" for Q3. Before the results were issued, SQ closed at $80.98 per share.I warned investors in mid-July not to buy SQ stock until they knew that the shares could rise above the low-$80s per share level, which I believed was a potential ceiling. That upper bound held, and now SQ stock is around $65 per share.After its recent drop, Square stock trades at a forward price-earnings (PE) ratio of about 58. From a certain point of view, it does not appear expensive. Analysts, on average, forecast profit growth for SQ of 63.8% this year and 45.5% in fiscal 2020. Numerous investors would gladly pay 58 times forward earnings for a stock that offered such growth.However, the inverted yield curve could indicate that a recession is looming, and recessions tend to reduce investors' tolerance for such multiples. Moreover, such conditions create concerns about profit growth . Thus far, analysts' profit estimates for SQ continue to hold steady. However, in a recession, Square's revenue growth would likely decline. For that reason, investors should probably not buy SQ stock now. Square Is Set to Transform Finance as We Know ItHowever, investors should look to buy SQ stock as those fears begin to subside. SQ is on the path to becoming a payments ecosystem. In other words, it could become the Apple (NASDAQ:AAPL) of the payments world.SQ began as a company that allowed any smartphone user to accept credit-card payments. The firm has ventured into multiple payments-related businesses to take advantage of the increased use of payment cards. Its innovations have presented a challenge to older payments companies such as NCR (NYSE:NCR) and Automatic Data Processing (NASDAQ:ADP).Moreover, its innovation could reach new levels if it obtains a banking license. InvestorPlace contributor Ian Bezek correctly pointed out that becoming a bank creates a heavy regulatory burden for companies. However, as we saw when Apple entered the music business, transformative companies tend to find a way around such difficulties. Due to the size and reach of Square's ecosystem, a successful move into banking could transform the industry.I don't think SQ would drive all banks out of business if it obtains a banking licence. However, it could lead investors to question the need for entities such as Citigroup (NYSE:C) or Goldman Sachs (NYSE:GS). And in such a scenario, SQ would at least force banks to transform themselves to survive. Final Thoughts on SQ StockSQ stock will struggle for now, but it will eventually grow tremendously by transforming its industry. A high multiple for SQ stock, lower profits for SQ and a recession would place further pressure on Square stock in the near-term. As a result, investors should watch Square stock, but not buy it at this time.However, the power of Square's financial ecosystem continues to grow. That leaves companies which operate in only one part of the financial-services sector vulnerable. It could also make money-oriented IT companies or even banks as we know them obsolete. Although investors should stay out of SQ stock for now, SQ looks poised to profit from its transformation of finance as we know it.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks That Could See 100% Gains, If Not More * 11 Stocks Under $10 to Buy Now * 6 China Stocks to Buy on the Dip The post Square Stock Will Eventually Move Much Higher, But Don't Buy It Yet appeared first on InvestorPlace.
