Can Netflix Stock Get Back to All-Time Highs?

Netflix, Inc. (NASDAQ:NFLX) stock hit an all-time high of $423.21 in the summer of 2018. Unfortunately, the story was not so bright in the second half of the year. Netflix succumbed to a disappointing earnings report and a sharp selloff for tech stocks on the NASDAQ. Now the company enters 2019 facing its stiffest challenges in years.

The biggest challenge will be the continued explosion of streaming service options in 2019. Walt Disney Co. (NYSE: DIS)is set to launch its streaming service in late 2019, which will strip Netflix of Marvel, Star Wars, and other Disney properties. WarnerMedia, in front of its parent company AT&T Inc. (NYSE:T), will also launch a revamped streaming service this year. This will allow WarnerMedia to showcase its films and HBO series.

Netflix has several advantages in its corner, including brand recognition and a gigantic war chest. It will be hard for any provider to match the breadth of content that Netflix has committed to. The company will open a second major studio as it prepares to broaden its offerings into 2019. Its recent release, the film Bird Box, drew in 45 million subscriber accounts worldwide during its first seven days of service.

The streaming scene is becoming increasingly fragmented, and Netflix will likely feel the pinch as we reach the end of this decade. The company is set to release its fourth-quarter and full-year results for 2018 this month. No matter the result investors may want to steer clear as tech stocks battle volatility and Netflix adjusts to a new environment.