[ad_1]
Text size
Netflix
stock will fall due to its high valuation and increasing competition, according to Wedbush Titles.
The broadcast giant is expected to announce its second quarter financial results on Wednesday after the market closes.
The story back. The Netflix share (ticker: NFLX) has grown about 40% this year as investors are increasingly optimistic about their leadership in the video streaming market. However, the company will face increasing competition from media conglomerates such as
Walt Disney
(DIS), which plans to launch its Disney + streaming service later this year.
What's up. Wedbush Securities Analyst Michael Pachter reiterated Friday its underperformance rating for Netflix action, citing recent feeds of content.
"We believe that the valuation of Netflix is ​​unjustified," he wrote. "Content migration and price increases could lead to a deceleration in the growth in the number of subscribers."
The company declined to comment.
Netflix shares fell 1.6% to $ 373.25 on Friday.
S & P 500
increased by 0.5%.
The analyst said that over the next few years, Netflix would lose content for Disney and Fox accounting for about 25% of its current viewing hours.
"We estimate that the content of Comcast, Fox, Disney and Warner Bros. currently accounts for 60 to 65% of Netflix's viewing hours, and we expect that most of this content will eventually be transferred," he said. -he writes.
Look forward. Pachter reaffirmed its target of $ 183 USD over 12 months for Netflix shares.
Write to Tae Kim at [email protected]
[ad_2]
Source link