It seems that Netflix is getting worse. Its’ third quarter report proves that it is getting more and more concerning. Netflix has been experiencing a continuous dive on its stock performance.
Last July, it announced that it has lost a significant amount of U.S. streaming subscribers. And the international subscribers are not helping either, with its growth slowing further.
A report by CNN Business stated that Netflix shares (NFLX) have dived up to almost 25% in the last 3 months. It is now the worst performer on the FAANG five Big Tech companies compared to Facebook, Apple, Amazon, and Google.
No longer at the top, competitors drags Netflix stock down
Netflix is losing its place as the top VOD platform now. New media streaming platforms come up, offering cheaper subscriptions and exclusive contents.
Disney+, for example, offers its subscription plan for only $6.99 per month, only half of Netflix’s $12.99. Worse, Apple’s own VOD platform, Apple TV+ which will launch at November 1st is available for only $4.99 per month.
Meanwhile, Netflix has been bleeding out money continuously for its original contents. Though some of its original contents including Stranger Things series has sparked up interest and popularity, it might not be able to help much further.
Disney+ is threatening as it has hold over contents by Marvel, Pixar, Licasfilm and Disney. And frankly, those content are the most popular ones.
Netflix is also on the risk of losing more subscribers as popular series such as “Friends” and “The Office” are leaving the platform. The two will instead be available on HBO max within the next two years.
However, Netflx stock is still 5% higher than the previous year and most of Wall Street analysts still favor the company. Seven of the twelve analysts put their price target at $400. And it is more than 40% higher than the vurrent stock price.
