Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Netflix Jumps as Analysts See 'No End' to Cord Cutting

Published 2020-01-23, 02:53 p/m
Updated 2020-01-23, 03:29 p/m
© Reuters.

© Reuters.

By Yasin Ebrahim

Investing.com – Netflix (NASDAQ:NFLX) surged on Thursday as one analyst suggested the streaming giant may be set to win big as Comcast's subscriber losses indicate cord cutting is far from over.

Comcast (NASDAQ:CMCSA) reported a net loss of 133,000 residential video subscribers and warned that the pace of subscriber loss may continue, many of whom may likely turn to Netflix for the streaming needs, said Stifel analyst Scott Devitt

"Comparing Netflix to introductory pricing and/or inferior over-the-top products as a justification for worrying about the competitive climate is missing the fact that the cable, telecom and satellite video industry (where all the money is) is shrinking with no end in sight," Devitt says.

The bullish note on Netflix comes just days after the streaming giant reported better-than-expected quarterly results, but projected weaker subscription additions than expected for the current quarter.

Netflix projected a gain of 7 million paid subscribers worldwide in the first quarter, missing estimates of the 7.82 million.

The company has seen its growth come under pressure as growth in its core U.S. market has slowed at a time when competition has intensified with the arrival of new streaming incumbents like Disney+ and Apple (NASDAQ:AAPL) TV.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.