- Netflix is well-positioned to steer your competition since it is an expert of both content and technology, a UBS analyst said.
- Its increasing subscriber growth, loyal fans, and original content will probably sustain the company’s growth trajectory.
- View Netflix’s realtime stock price here.
While competition for your hearts of video streaming viewers is expected to heat, Netflix will continue to be over the top, according to UBS analyst Eric Sheridan.
Even though young adults video streaming services will likely enter the fray, “we predict Netflix will likely remain a-# 1 automobile scale, excellent execution, brand, proven technology & content expertise, singular product focus, and lead in building their own exclusive original content library,” Sheridan said.
Sheridan raised his price target to $250 per share from $221.66.
Netflix is often a master of both content and technology, which assists to it sustain its subscription growth and make loyal customers satisfied, he was quoted saying.
Based on UBS’s estimates, Netflix subscription growth is predicted to maintain rising, particularly as being the company invests in original content, expands its overseas local content, and adds more towards the selection that may attract international subscribers.
Netflix raised its US subscription prices in October, who had no material affect on its subscription growth. Sheridan notes until this “will be supportive of the platform’s pricing power.” Sheridan reasons the more subscribers and views Netflix can attract, the higher potential it will have for increased average revenue per user and overall revenue.
Sheridan mentioned the potency of Netflix’s original content, particularly the widely popular “Stranger Things” and “13 Reasons Why.” Spending on original content brings in subscribers and position “Netflix to sustain its clear global leadership while in the emerging video footage subscription business.”
Netflix have their own share of bulls and bears on Wall Street. Quite a lot of its detractors see rising competition like a threat. Truth be told a heavy hitter than Disney has entered the scene by getting a video streaming company and elements of Modern Fox.
Yet Macquarie analyst Tim Nollen said the provider is “miles before its peers,” simply because it chooses to target subscriptions over advertising, and provides scaled distribution by using a growing international presence.
Netflix’s stock is trading at $218.28 a share as well as being up 8.58% to your year.
The firm is supposed to report its fourth-quarter results on Jan. 22.
Read more info on why one analyst thinks Netflix has room to cultivate.