Netflix stock fell 6.5% on Monday
Netflix (NFLX) stock has been on a roll this year, as it has more than doubled in 2018. On June 20, the stock closed at its highest point of $416.80 on the back of several analysts increasing their target prices for the stock.
However, Netflix stock fell 6.5% on Monday, June 25, closing at $384.50. This fall was part of the broader market decline as the US–China trade war escalated. It was the stock’s biggest decline in two years.
Another factor that pushed Netflix stock down was the possibility of greater competition in Germany. ProSiebenSat.1 and Discovery Communications (DISCA) partnered to launch a German streaming service. This partnership could combine ProSieben’s Maxdome, a video-on-demand service, and Discovery’s Eurosport Player.
Netflix’s stock price was heating up
Although these factors aren’t expected to materially upset the American streaming giant’s growth trajectory, they have temporarily derailed Netflix’s tremendous rally. If the markets continue to be concerned, Netflix stock could be pulled toward risk-off trading.
However, this scenario could also create some value in one of the darlings of the markets. If Netflix continues to top analysts’ expectations, as its second-quarter results are slated to be announced in mid-July, the stock could have more upside.
Netflix stock has performed exceptionally well after the company announced stellar numbers in the last three quarters, which has triggered this massive surge in the stock.