Netflix: shares drop after Disney termination decision.
(CercleFinance.com) - Netflix shares are down over 3% on Wednesday after Disney's decision to end its distribution deal with the video streaming service and to start its own Disney-branded platform in 2019.
As a result, Netflix shares are currently losing 3.4% at 172.2 dollars on the Nasdaq.
Analysts at Jefferies - who have a "hold" rating on the stock, with a target price of 165 dollars - think that the move reflects the fact that content owners are increasingly tempted to retain their intellectual property for their own platforms.
"While it is hard to quantify the impact in terms of net adds for Netflix, we believe recent Disney films have been growth drivers for Netflix over the last 12 months," the broker said.
"Still, Netflix has already shifted to aggressively developing its own content," Jefferies recalls.
The broker hence expects the shares to continue to be driven by subscriber growth globally, along with its international profitability.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
As a result, Netflix shares are currently losing 3.4% at 172.2 dollars on the Nasdaq.
Analysts at Jefferies - who have a "hold" rating on the stock, with a target price of 165 dollars - think that the move reflects the fact that content owners are increasingly tempted to retain their intellectual property for their own platforms.
"While it is hard to quantify the impact in terms of net adds for Netflix, we believe recent Disney films have been growth drivers for Netflix over the last 12 months," the broker said.
"Still, Netflix has already shifted to aggressively developing its own content," Jefferies recalls.
The broker hence expects the shares to continue to be driven by subscriber growth globally, along with its international profitability.
Copyright (c) 2017 CercleFinance.com. All rights reserved.