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Can Netflix (NFLX) stop the downward spiral of its actions? The Netflix stock fell 1.78% on Monday and went into negative territory for the year. Meanwhile, his Netflix rival Walt Disney (DIS) has begun making pre-orders for his Disney + video service.
Disney +, to be launched November 12, is one of Netflix's new competitors in the subscription video market. Disney now allows people to pre-order Disney + in advance for $ 6.99 a month or $ 69.99 a year. The price of the service was set at a competitive price with the obvious purpose of shaking Netflix in the subscription video market.
Netflix charges $ 8.99 a month for its basic plan and $ 12.99 a year for its most popular plan. However, not all Netflix customers are satisfied with these fees. For example, a Kill the Cable Bill study shows that a quarter of Netflix's US subscribers believe the service is too expensive. Netflix could be vulnerable as its rivals, Disney and Apple, launch cheaper video services. Apple is expected to launch its Apple TV + video service on November 1 for only $ 4.99 per month.
Netflix shares under pressure from underwriters miss and show losses
Disney +'s presale launch is just the last push on Netflix shares. Several factors have put pressure on the stock in recent months. In July, Netflix's second quarter results did not meet its growth targets, both personal and those of Wall Street. In fact, Netflix announced a surprise loss of about 130,000 US subscribers in the second quarter. Netflix expected to earn 300,000 US subscribers and Wall Street expects 352,000 additional US subscribers.
Internationally, Netflix added 2.8 million subscribers, below its target of 4.7 million and Wall Street 4.8 million. Netflix's stock has been under pressure since the company announced the lack of growth of its subscribers.
Netflix plans to release its third quarter results on October 16th. The company plans to add 800,000 US subscribers and 6.2 million international subscribers in the third quarter.
Investor concern over the loss of some of its popular issues by Netflix to rivals may also have put pressure on the stock. AT & T pulls its show to success, Friends, and Comcast withdraws Office. Both must be available on competing video services.
Netflix is now the worst-performing FAANG stock
With the decline of Monday, the title Netflix has now lost 0.65%, which is the worst performance of the group FAANG this year. Since the beginning of the year, shares on Facebook, Apple, Amazon and Alphabet have increased 42.51%, 38.66%, 18.86% and 18.16%, respectively.
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