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Why Netflix Stock Rose Nearly 5% on March 20

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Netflix stock surged despite Disney’s acquisition of Fox

The Walt Disney Company’s (DIS) acquisition of 21st Century Fox’s assets poses a big threat to Netflix (NFLX), but Netflix stock rose 4.6% on March 20 despite the completion of the deal.

With Disney scheduled to launch its streaming service this year and Comcast’s (CMCSA) NBCUniversal scheduled to reveal its own streaming service next year, Netflix’s cost of acquiring third-party content is likely to increase.

These media giants—at least in Disney’s case—are also likely to strip their content from Netflix, so it’s surprising that Netflix stock saw such a steep rise on March 20. The video streaming giant has spent billions to ramp up its production of original movies and shows. 

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Netflix launched a trailer for the third season of Stranger Things

On March 20, Netflix released a trailer for the third season of its popular series Stranger Things. The timing of the trailer was perfect, as it drew attention away from Disney’s acquisition of Fox.

However, Netflix is likely to face increasingly stiff competition back home, where its subscriber numbers are stagnating. Increasing competition in the United States could stifle its growth at home even more.

What Netflix has been doing well lately is ramping up its content for viewers outside the United States. Netflix’s international subscriber numbers have continued to see strong growth as a result.

Netflix continues to have loyal subscriber base both at home and abroad, and it’s attracting more and more subscribers as it continues to launch quality original content.

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