Netflix is a Great Buying Opportunity
Netflix has been hammered recently by news that Disney is launching its own streaming service. The stock saw a major selloff on Friday (4%) because of the threat the Disney move theoretically poses to Netflix's model. However, the fears seem overblown, providing a buying opportunity of Netflix. Analyst Scott Devitt from Stifel explains, "We see little risk to Netflix growth plans and pricing power against this new offering given Netflix's most popular price point should remain lower than the Disney bundle while Netflix is on track to materially outspend Disney on content".
FINSUM : Netflix seems likely to remain both cheaper and offer more content for the foreseeable future, so the fears do seem overdone to us.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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