It’s prime time to trade Netflix shares
Netflix share price has risen 59% already this year and is expected to rise even further after the company posts its third quarter earnings figures
If you’re already a Netflix (NFLX) subscriber you probably don’t need too much convincing about how good it is and will appreciate why analysts are predicting that its share price is set to rise even higher, despite the fact that it has already grown 59% this year as it teases the $200 per share mark.
You will notice from the chart that Netflix share price has a tendency to reach a peak as quarterly earnings figures are announced followed by a drop before picking up on its overall upward trend.
If you’re not a Netflix subscriber then you’re one of the reasons why these analysts expect its share price to keep on rising. They expect that you soon will be. Streaming is the present and the future.
It’s a service that meets the entertainment needs of our increasingly demanding lives. And once you’ve subscribed it’s hard to live without.
Think of it as having unlimited access to one of those old video stores that you used to rent DVDs from. Only with Netflix you never need to leave your home to get your viewing entertainment and you watch what you want, when you want and as many times as you want.
Opt for the premium service and you can also view the content simultaneously from another screen, tablet or smartphone. That way you enjoy your favourite show while other members of your family watch what they want.
Most importantly, Netflix offers some of the best shows and movies around in an app that’s very easy to use. So far, they’ve produced hits like “House of Cards”, “Orange is the New Black”, “Narcos”, “Peaky Blinders” and “The Killing”.
Last week Netflix announced a price rise which immediately boosted stock prices. And they are not worried about losing subscribers because it’s still value for money. By comparison, the monthly subscription for the premium service costs about the same as a cinema ticket.
Third quarter growth expected
Wall Street firm UBS has told its clients that Netflix will report Q3 subscriber growth. This has been achieved without the addition of any compelling new content.
However, new content is being rolled out in the fourth quarter. They’re releasing new seasons of “Stranger Things” and the “The Crown” – two of the network’s most popular shows.
Netflix recently made its first acquisition by buying Millarworld. The comic book publishing company includes “Kingsman: The Secret Service” and “Wanted” among its titles. This suggests further new original content should be expected.
Netflix has competition from rivals Hulu and Amazon (AMZN), and the potential entry of Disney (DIS) into the streaming market could disrupt their market share. Traders who have followed Netflix for a long time are also aware that the stock can be volatile. However, as long as it produces a steady stream of original content and remains price competitive it’s on firm ground.
For more advice on Netflix and how to capitalise on share price movements talk to the experts at FXB Trading.