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How Is Netflix Placed among FAANG Stocks?

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Mar. 29 2019, Updated 10:08 a.m. ET

Netflix stock price movement

Netflix (NFLX) stock rose 0.35% on March 28 and closed at $354.61. The stock was down 0.9% this month but increased 32.5% in the YTD period as of March 28. Netflix stock grew the most on a YTD basis in the so-called FAANG group, which consists of Facebook (FB), Apple, Amazon (AMZN), Netflix, and Google-parent Alphabet (GOOGL). Stock prices of Facebook, Apple, Amazon, and Alphabet increased 26.3%, 20.2%, 18.1%, and 12.2%, respectively, in the YTD period as of March 28.

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Factors affecting the stock

Netflix stock has been reeling under pressure for a while. Though the company is considered the content king, it’s facing intense competition from other established streaming players like Amazon (AMZN), Hulu, AT&T’s (T) HBO, and Alphabet’s (GOOGL) YouTube. Netflix is also expected to face competition from new streaming players such as Walt Disney (DIS), AT&T’s (T) WarnerMedia, and Comcast’s (CMCSA) NBCUniversal, which plans to launch its streaming services soon. Apple recently unveiled its original video streaming service, which will begin in the fall. However, the company didn’t share the pricing details of the service.

Amid competition, Netflix’s key executives such as Kelly Bennett, Netflix’s chief marketing officer, and David Wells, the company’s chief financial officer, also left the company. While Wells exited in August 2018, Bennett left the company in March 2019.

Though the company is investing in premium content to grow its subscriber base and stay ahead of the competition, the company still predicts sluggish growth in the subscriber additions in the US for the first quarter, which has shaken investors’ confidence in the stock.

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