The premieres led by Stranger Things 3, catalysts in the second half of the year
Netflix it's upside down on Wall Street … and stranger stuff It is your great salvation. After publication, the popular streaming platform has plummeted by more than 10% in the market some results in which it had fewer subscribers than expected by analyst consensus. But hope is not lost and is found in the adventures of a group of young people from the eighties.
Why do analysts keep buying the Netflix titles despite the recent collapse? Because they still trust the story of the platform Reed Hastings and Ted Sarandos. A story that was largely supported by his jewel in the crown: stranger things.
40 million out of a total of 155 million users saw the third season of the series beat all records of the platform in the first days after the premiere. And all that, four days after the company's accounts were closed in the second quarter, so the impact of the landing on Netflix is not recorded here.
Van Morgan Stanley maintain their support for Netflix and ask: "Has anything changed in the last three months? We don't believe it, so we repeat our estimates for the rest of the year and, if met, 2019 will again be a record year for the platform in terms of average revenue growth per user. "
In Piper Jaffray gambles because Netflix "maintains a good market share, although the slow growth of subscribers demonstrates the importance for the company to create attractive content to attract new customers." And part of this content will be shown exactly in the second half of the year with the new seasons of Stranger Things, Orange is the New Black, The Crown … and films directed by renowned filmmakers such as Martin Scorsese and Michael Bay.
WILL IT KEEP THE EMBESTIDE OF ITS COMPETITORS?
One of the most important dates is to see if Netflix has the bet of Disney +, the streaming platform that will reach the US market on November 12. The analyst Scott Devitt believes that "Netflix must demonstrate, as happened before his proposal is still one of the best in the sector. "
Expectations are high and most analysts believe that Netflix can weather the storm for the rest of the year. From JP Morgan point out that "we continue to believe that the second semester of Netflix is perhaps the best in its history in terms of content."
So far this year, Netflix accumulates an increase of 35% with regard to the 19% increases in the S&P 500 and the 17% increase recorded by the Dow Jones. Currently, the streaming platform supports the support of 73% of the analysts collected by FactSet and who recommends to & # 39; buy & # 39; Only 23% recommends & # 39; retain & # 39; and 5% & # 39; sell & # 39 ;.