The merger of Disney and 21st Century Fox represents one of many greatest threats to Netflix in its 21-year historical past. But on the day when the mega-merger closed, Netflix noticed it inventory rise practically 5%.
Why the renewed bullishness about Netflix as Disney prepares to launch a rival streaming service later this 12 months? Wall Avenue believes that any menace from a Disney-Fox mixture has lengthy been priced in to the inventory. In the meantime, Netflix has been getting ready for years for Disney to tug its content material from Netflix’s library, stocking up by itself share of must-watch titles.
That message was pushed house Wednesday as Netflix unveiled a trailer for its long-awaited third season of Stranger Issues, only some hours after the Disney-Fox merger formally closed.
The trailer’s arrival adopted a cryptic tweet teasing the brand new season on Stranger Issues‘ Twitter account on Tuesday. Which, coincidentally or not, was timed near Disney’s official announcement yesterday concerning the completion of its merger with Fox.
A minimum of one analyst has downgraded Netflix this month, citing Disney’s imminent streaming providing as a key issue. However in keeping with Barron’s, two analysts have come out this week with analysis notes bullish on Netflix’s prospects, thanks in good half to the groundwork Netflix has laid in abroad markets through the previous a number of years.
Imperial Capital analyst David Miller wrote Wednesday that Netflix’s transfer to create content material from exterior the U.S. is just not solely boosting viewers overseas, it’s additionally delivering new hits for its home viewers.
“Examples are Bodyguard, a criminal offense drama filmed in Europe however which is enjoying effectively all all through continental Europe; The Protector, a drama/fantasy sequence filmed and set in Turkey; and Child, an Italian teen drama which can be discovering cross-border attraction,” Miller mentioned. “Too many media buyers consider Netflix’s worldwide enterprise as merely U.S. content material that’s dubbed in varied international languages, however in lots of instances the inverse of that’s beginning to take maintain.”
In the meantime, RBC Capital’s Mark Mahaney mentioned Netflix is gaining in recognition in Japan, citing a survey of two,000 Japanese customers who aren’t solely watching extra exhibits on Netflix however are “reporting excessive ranges of satisfaction with the service.”
Netflix inventory rose four.6% to shut at $375.22 a share Wednesday. Disney’s inventory closed down zero.34% at $109.99 a share.