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Netflix Cut to Sell; Need for Discount Service Stressed

Published 12/10/2019, 11:32 AM
Updated 12/10/2019, 11:34 AM
© Reuters.

Investing.com - Netflix (NASDAQ:NFLX) fell Tuesday following a downgrade from Needham, which has already expressed its concern the streaming service would start bleeding subscribers as new rivals gain traction.

Needham cut the stock to underperform from hold.

Shares fell 1.5% in midday trading.

Netflix (NASDAQ:NFLX) needs “a second, lower priced, service to compete with Disney+, Apple+, Hulu, CBS All Access and Peacock,” analyst Laura Martin wrote.

The new tier would have to have advertising to offset revenue losses, but Netflix (NASDAQ:NFLX) is committed to remaining ad free, which is a key reason for the downgrade, Graham said.

Latest comments

cmmercials before and after could work but not during movies.
94 metascore says you are wrong. Then it doesnt matter what you think.
Netflix is very original but its going further and further in debt producing those films. while other streaming apps build up money and purchase rights for popular movies and shows that guarantee more revenue
Netflix and Prime both have a whole bunch of movies and there own inhouse productions but none worth watching.. old ********that has been seen already..movies second tie around not worth watching twice.. lame and not worth paying monthly fees... got internet, live on air tv and smart-box all if which are free-ish and more entertaining
Your dead wrong about Amazon prime.  They have a huge selection of the best classic movies from the 70's.  They are head and shoulders above Netflix in this area.
I sold most of my remaining shares after watching The Irishman. It's not a bad gangster flick, but very slow and mediocre by all standards. It certainly should not have cost anywhere near 160 mil to get it done. That kind of budget is more akin to Avatar, Star Wars, etc. Horrible business decision by NFLX imo.
humm..... you don't enjoy one movie and you sell.... mediocre analysis indeed.
 obviously you didn't watch the movie. Had you, you like any investor who actually cares where their money is going, you'd be highly disappointed by such a blatant waste of funds. That 160-200 mil reported budget could have financed several dozen original series. That movie was also supposed to be NFLX's baby, that was going to carry it to the oscars- well, GL with that one! Not only did they WAY over spend our funds on the flop, but they didn't even try to advertise it. Not one person that I'm aware of saw a even a single movie poster or preview commercial before its theatrical release. It was all money down the tank. You can hold onto the failing mediocre-at-best stock all you want, but I'm out.
All that said, I may however reconsider share ownership if/when it drops below 200. 180 is probably a fair price for it now, but as competition fills in those gaps, this stock could potentially continue into a bear market for another year or two before it finally starts to find its ground again.
Those other streaming services are not as good as Netflix. Netflix is producing their own movies , no commercials. They should keep doing what they are doing.
Netflix is very original but its going further and further in debt producing those films. while other streaming apps build up money and purchase rights for popular movies and shows that guarantee more revenue
Hulu is much better than Netflix
No commercials?. I'd pay 10 times more for this to remain true!
You'd be surprised how many people actually prefer commercials to be added to their programming. Ads actually give a welcome respite to viewers who don't otherwise feel comfortable pause button themselves during programs. Many people also enjoy actually seeing what products and services are out there- an experience you just can't get through netflix. My family falls into both categories of viewers- at times we like to have commercial driven programming, and other times it's nice to watch netflix or another ad-free network. It's all about the mood.
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