Yahoo Finance StockBeat: Netflix Climbs on Piper Jaffray Backing Despite Competition
Investing.com – Netflix (NASDAQ:NFLX) climbed higher on Friday after Piper Jaffray backed the streaming giant to continue its dominance, even as rivals eye a piece of the pie.
With Walt Disney (NYSE:DIS) and Apple (NASDAQ:AAPL) are set to launch streaming services as soon as November, investors appeared to be uneasy about Netflix continuing its domination in the streaming world. But Piper Jaffray allayed fears, saying it expects the company will continue to capture a significant portion of traditional content dollars, as those dollars migrate to streaming.
Netflix rose 2.27% on the day (as of 1:20 p.m. ET) and is up more than 10% for the year so far. However, the shares are still nearly 24% below their 52-week high, a function of shedding more than a fifth of its gains after posting disappointing second results. The issue was meager subscriber additions that came in well below analysts’ estimates.
But Piper believes subscriber growth will rebound in the third quarter, driven by an improved content slate in the second half of the year, forecasting third-quarter domestic subscription growth around 6.4% year over year and international growth in a range of 33% to 35%.
"There should be a positive impact from an improving slate and we are, therefore, optimistic about the company’s opportunity to grow subscriber additions year on year on a full-year basis,” Piper said.
Apple sent streaming companies like Netflix and Roku (NASDAQ:ROKU) tumbling earlier this week, when it revealed that its streaming service, AppleTV+, would go live on Nov. 1 at a lower price than Netflix (NASDAQ:NFLX) and Disney+ streaming services.
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