Many Netflix subscribers will not leave for Disney or Apple, survey finds
Netflix shares cratered over the previous 3 months, as concerns about slowing subscriber development have actually combined with investors fearing the threats of new streaming competitors from both innovation and media giants.But Piper Jaffray remains unfazed, sticking by its optimistic projection for Netflix’stock and, in a September survey of the streaming service’s customers, the firm discovered that threats from rivals may be overblown.”Our survey suggests that the bulk(~ 75%)of Netflix subscribers do not mean to register for either Disney +or Apple TELEVISION +. For those that do expect to use one of these offerings, the huge bulk expect to likewise keep their Netflix subscription, “Piper Jaffray expert Michael Olson said.Netflix shares fell 1.1% in trading Wednesday, from its previous close of $269.58 a share, in the middle of broad declines in U.S. markets. Piper Jaffray has an overweight score on Netflix with a rate target of$440 a share– nearly 64 %above the company’s present stock price.Both Disney and Apple are introducing new streaming video platforms in the next couple of weeks. Piper Jaffray’s
study of about 1,500 subscribers found they do not plan to leave Netflix for Disney +and Apple TV+”Most existing Netflix subscribers appear to be trending towards multiple streaming video memberships, especially as many continue to minimize their invest on standard TV offerings,”Olson said.Piper Jaffray’s self-confidence comes after numerous Wall Street experts have sounded the alarm on Netflix ‘increasing costs and potential losses to its streaming market share. As recently as July, positive forecasts for Netflix were nearly universal on the Street. Considering that then, Netflix stock has actually dropped nearly 30%and removed its 2019 gains.While Netflix faces other dangers, such as increasing content licensing costs and eroding prices power, Piper Jaffray believes the competitive danger is now priced into the stock.” NFLX now trades at multi-year
valuation lows, recommending shares show much of the upcoming competitors threat and routine sub include volatility,” Olson included.– CNBC’s contributed to this report.
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