Netflix (NASDAQ:NFLX) stock fell 4.26% on September 24. The streaming giant has seen its stock drop 31% over the past three months.
Analysts have rapidly lost faith in Netflix as it is facing growing competition with the entrance of several big players in the streaming game. Still, Netflix continues to spend huge dollars on original content.
Apple and Disney have moved to challenge Netflix by dramatically lowering the price point for their streaming services. The Apple streaming service will start at $4.99 per month and Disney+ will offer HD streaming as part of its low-cost $6.99 per month plan. Netflix’s basic plan still sits at $8.99 per month.
Analysts are now taking aim at Netflix for its valuation. Barclays stated that Netflix is heavily overvalued and would need to post subscriber growth five times its current rate in order to justify the stock price. The pressure is well and truly on Netflix ahead of its third-quarter earnings report. This is set for release on October 16.
Shares of Netflix are now trading at the low end of its 52-week range. Netflix is a dangerous pick for the long-term, but there is still a chance to make a profit here for value investors. The stock boasts an RSI of 24 as of close on September 24, putting Netflix in technically oversold territory. Netflix is still a force in the streaming space, and its viewership is tracking strong.
I’m betting on a rebound for the stock in the final months of 2019.
Tech Insider
