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Could Netflix Stock Rebound This Month?


Sep. 3 2019, Published 4:41 p.m. ET

We’ve now entered the final month of the third quarter, and many eyes are on Netflix (NFLX). How the company performs this quarter could determine investors’ outlook for the stock. In the second quarter, Netflix disappointed them when it missed its own and Wall Street’s subscriber addition targets. The stock has been under pressure ever since.

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Netflix stock the weakest in the FAANG group

Netflix was the weakest FAANG stock last month. While Netflix stock fell more than 9.0% in August, Amazon, Facebook, Apple, and Alphabet fell 4.85%, 4.41%, 2.02%, and 2.27%, respectively.

To lure more subscribers, stand out from the competition, and hopefully reignite investor interest in its stock, Netflix is releasing new content. The company has lined up 41 new original shows and movies for release this month, according to BGR. It released 56 originals in August and 44 originals in July.

Netflix aims to add 7.0 million new subscribers this quarter to reach 159 million subscribers, with 800,000 additions in the US and 6.2 million in international markets. The company finished the second quarter with about 152 million subscribers globally.

Netflix to face more competition in the fourth quarter

Walt Disney (DIS) and Apple plan to launch their own subscription video services in the fourth quarter. Given that these services could present stiff competition for Netflix, this quarter may be the company’s best chance to revive investor hope in its stock.

As Netflix is already way ahead in terms of subscriber numbers, Disney and Apple seem to be aiming to undercut Netflix through competitive pricing. Disney+, Disney’s Netflix competitor, is set to launch on November 12 at $6.99 a month. Furthermore, Disney recently allowed Americans to preorder Disney+ for less than $4 a month. According to Bloomberg, Apple plans to charge $9.99 per month for its Apple TV+ video service launching this fall. That price could make Apple TV+ competitive with Netflix’s standard plan cost of $12.99.


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