Netflix, Inc. Remains A Solid Investment Opportunity Despite False Reports

Netflix, Inc. Remains A Solid Investment Opportunity Despite False Reports

Earlier this week, online entertainment streaming service giant Netflix was the subject of a report that claimed that the company was set to begin streaming every Disney title. The report, which turned out to be false, nonetheless spurred a small increase in stock price for the company.

False reports spur price increase

While this may have pleased Netflix customers with young children, it would have certainly created an oversupply of content. Additionally, the addition of every Disney title would have made the streaming service seem less consumer friendly. Adding such a large amount of third-party titles would have also undermined the company’s recent approach in consolidating existing content and focusing primarily on more original programming.

Macro Hedge Funds Earn Huge Profits In Volatile Macro Environment

Yarra Square Investing Greenhaven Road CapitalWith the S&P 500 falling a double-digit percentage in the first half, most equity hedge fund managers struggled to keep their heads above water. The performance of the equity hedge fund sector stands in stark contrast to macro hedge funds, which are enjoying one of the best runs of good performance since the financial crisis. Read More

Over the past few years, Netflix has seen competition increase with companies such as Amazon and Apple beginning to delve into the world of online entertainment streaming.

Netflix remains a great investment opportunity

Despite unfounded rumors, Netflix remains a great investment opportunity. The streaming giant has enormous potential to expand globally, as it is doing well across Europe despite tough competition from local firms. Latin America and South America also show promise for the company.

Now with over 80 million subscribers, Netflix can make a fortune by just raising the subscription price slightly. Additionally, the grace period for existing users that were grandfathered in at the $7.99 plan will expire on June 16, at which point the rate would increase to $9.99. This translates to close to one billion dollars in annual revenue.

Furthermore, Netflix’s massive investment in original programming is generating some very strong content which has in turn been met with high levels of praise. Likewise, the company’s recent deal with Disney, Pixar, and Marvel should give it a significant competitive advantage over the competition, even though it will not be streaming every Disney title, as the false report detailed.

While reports that Netflix would begin streaming every Disney title turned out to be false, the company remains a strong investment opportunity due to its massive international expansion, upcoming monthly rate hikes, and large investments in its own original content and programming.

Updated on

While studying economics, Brendan found himself comfortably falling down the rabbit hole of restaurant work, ultimately opening a consulting business and working as a private wine buyer. On a whim, he moved to China, and in his first week following a triumphant pub quiz victory, he found himself bleeding on the floor based on his arrogance. The same man who put him there offered him a job lecturing for the University of Wales in various sister universities throughout the Middle Kingdom. While primarily lecturing in descriptive and comparative statistics, Brendan simultaneously earned an Msc in Banking and International Finance from the University of Wales-Bangor. He's presently doing something he hates, respecting French people. Well, two, his wife and her mother in the lovely town of Antigua, Guatemala. <i>To contact Brendan or give him an exclusive, please contact him at</i>
Previous article SEC’s Mary Jo White Appoints Cyber-Security Senior Advisor
Next article “Forgiving” Government Employees’ Student Debt Is A Bad Idea

No posts to display