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Courtesy of Apple
News from
Apple
The $ 4.99 monthly price of TV + sent shares of
Roku
and
Netflix
Tuesday. This could be an overreaction, according to an analyst at Imperial Capital.
The story back. Ongoing wars are heating up, and Netflix and
Disney
look like the first runners. Apple hopes to compete on November 1 with its new Apple TV + service.
Apple TV + will cost $ 4.99 a month and will be launched with nine original shows. Wall Street was excited about the first of these numbers. After all, why would anyone pay $ 8.99 per month for Netflix or $ 6.99 per month for Disney + when the Apple service is so cheap? And this is free for a year to purchase a new iPhone, iPad, Apple TV, iPod Touch or Mac.
But like Bank of America Merrill Lynch analyst Nat Schindler noted, it's probably $ 4.99 for a reason.
What's up. David Miller, of the imperial capital reiterated his optimistic view of Netflix, in light of Apple TV + announcement. He wrote in a note Thursday morning that the market was too focused on the price of $ 4.99.
"The price action observed in the stock was entirely due to the impression that AAPL was trying to" break "NFLX on the price," he wrote.
But given the limited library of Apple TV + compared to the tens of thousands of Netflix titles, would anyone abandon Netflix for Apple TV +?
"Probably not, in our opinion and in our eyes, the price of $ 4.99, as well as the free package for Apple TV +, in the event of the purchase of a new device AAPL , is more an admission on the part of the AAPL that it is not easy to develop a number of installed subscribers. ," he wrote.
The Netflix stock was down slightly to $ 288.14 on Thursday. The Apple stock rose 0.8% to $ 225.40, while the Nasdaq Composite index was up 0.4%.
Look forward. Miller maintained the Outperform rating with a target price of $ 451.
He noted that Netflix has been expanding its customer base since 1999 and expanding its international base since 2011.
"That said, we think the market is putting too much emphasis on prices, rather than value," he wrote.
While the Apple lineup includes talents such as Jennifer Aniston, Samuel L. Jackson, Ron Moore, Aaron Paul, Oprah Winfrey, Octavia Spencer and Mr. Night Shyamalan, Netflix and Disney also have strong offers, he added.
Write to Connor Smith at [email protected]
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