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Netflix Inc. is the target of two new deep-pocket rivals, but it's prepared for questions about how this could affect its business by changing its definition of "competition" in advance.
Since Netflix
NFLX, -0.65%
unveiled a total of 139 million paid subscribers by the end of 2018, Apple Inc.
AAPL, + 0.18%
and Walt Disney Co.
DIS + 1.52%
have officially unveiled their visions of streaming TV services. Now, Netflix has to prove that it can continue to grow its subscriber base, with customers being seduced by two giant companies that know how to appeal to consumers.
Learn more about Disney + and Apple TV + streaming services
But the CEO, Reed Hastings – who once said that the biggest competition would be the live broadcast of HBO – has changed his handicap for the race.
"We are competing (and losing against) Fortnite more than HBO," the company said in its letter to shareholders for the holiday quarter. Netflix's attention "does not focus on Disney +, Amazon or others, but on how we can improve our experience for our members."
Full season preview: risk of recession rises as S & P 500 profits drop for the first time in 3 years
In other words, Netflix considers that the current feed readers, as well as the Apple and Disney offers soon launched, are just shining brightly, as they try to gain some of the time spent on the screen consumption of more diverse entertainment sources. In fact, Netflix's challenge is to maintain its incredible growth rate while not losing its customers to the benefit of its new competitors. Netflix added 30 million new net subscribers last year as its global push was needed, and analysts plan to add at least another $ 30 million this year.
Read: The 5 Biggest Questions About Netflix's Revenues
Subscriber numbers are usually the numbers that move the needle for Netflix shares, which gained 9% after the March report of last year. Executives forecast an additional 8.9 million additions for the first quarter, which Netflix will report on Tuesday as the earnings season really begins.
Even more banks
Bank of America Corp.
LAC -1.09%
and Morgan Stanley Inc.
MRS, -1.31%
seek to break with a series of unimpressive bank profits so far this quarter. Goldman Sachs Group Inc.
GS -3.82%
and Citigroup Inc.
C -0.06%
On Monday, they were hit by weak trading and mergers in the first three months of the year, although they may have been above analysts' expectations of low earnings. Bank of America is scheduled for Tuesday morning, followed by Morgan Stanley on Wednesday.
Do not miss: Goldman Sachs action leads Dow losers after first loss of income in 2 years
Five Dow components
J.P. Morgan Inc.
JPM, -1.14%
and Goldman Sachs were two of the seven Dow Jones Industrial Average
DJIA, -0.10%
components reporting this week.
In the field of health, Johnson & Johnson Inc.
JNJ, + 0.40%
and UnitedHealth Group Inc.
A H, + 3.13%
will show the results on Tuesday morning. J & J expects a "potentially messy" quarter from JP Morgan, Chris Schott, who worries about timing issues related to the company's Argenx licensing deal and to the sale of its advanced sterilization products. When the UnitedHealth reports are released, investors will ask management to reassure themselves on a number of critical political issues, including "Medicare for All".
Overview of J & J's results: Drug sales are the focus of generic competition
In the afternoon will be followed by International Business Machines Corp.
IBM, -0.31%
. According to David Grossman of Stifel, looking for signs of stabilization or improvement in the service sector of the company, but it is unlikely that the company significantly changes its forecast for the past year after a generally slow quarter.
American Express Co.
AXP, -0.34%
and Travelers Cos. Inc.
TRV, -0.68%
report Thursday morning.
Boeing fallout
The grounding of Boeing Co.
BA, -1.10%
New 737 Max aircraft affect major air carriers and United Continental Holdings Inc.
UAL -1.13%
could give an idea of the scope in his Tuesday report. Helane Becker of Cowen & Co. said the company was on track to meet its profit targets for the year due to 737 Max strandings and recent fuel cost difficulties. Management can also indicate if leisure trips resume after a slow start to the year.
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