A Wall Street analyst on Friday removed his buy rating on Netflix (NFLX) after considering the coming competition from the likes of Walt Disney (DIS) and AT&T‘s (T) WarnerMedia. Netflix stock fell on the news.
Buckingham Research analyst Matthew Harrigan downgraded Netflix stock to neutral from buy, but kept his price target of 382. He said Netflix stock is “not compelling in (the) current market.”
“Long-term global Netflix member growth may be compromised by the increasing competition,” Harrigan said in a note to clients. “Beyond current competition from Amazon (AMZN) Prime and Hulu, emerging streaming competition includes Disney+, WarnerMedia, Apple (AAPL), and numerous overseas regional and national market entrants.”
Netflix stock dropped 0.9% to 349.60 on the stock market today. Shares have been consolidating for the past 37 weeks with a buy point of 423.31.
At Disney’s annual shareholder meeting Thursday, Chief Executive Bob Iger discussed the company’s strong commitment to its direct-to-consumer streaming video service. He said the service will appeal to children and parents by including Disney’s entire film library, including all of its animated classics.
Disney+ will feature exclusive branded content from the Disney, Pixar, Marvel and Lucasfilm brands, he said. The service will launch later this year.
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