Netflix stock soars: Will the streaming giant end the year on a high note?
Netflix has been Wall Street’s favorite streaming stock for a while now, but the streaming wars are just getting started, as well as the war for more subscribers. Is Netflix positioned to survive the fierce competition?
According to Netflix’s second-quarter earnings report, the company earned $2.97 per share, compared with analysts’ expectations of $3.15. Revenues also came in at $7.34 billion, exceeding analysts’ expectations by 0.6%.
Netflix stocks are now trading at trading at $548 following Thursday’s breakout rally, which saw prices gain 6%.
However, subscriber growth has taken a big hit recently due to competition from the likes of Amazon and Disney as well as pandemic-related delays.
With Disney and Amazon also now competing for their share of subscribers, innovation is becoming increasingly important if Netflix is to maintain its dominance.
Pivoting to video games
Netflix recently announced plans to venture into the world of video games. It is said that Netflix will include games as part of its subscription service free of charge.
In its latest letter to shareholders, Netflix said “We’re also in the early stages of further expanding into games, building on our earlier efforts around interactivity (eg, Black Mirror Bandersnatch) and our Stranger Things games. We view gaming as another new content category for us, similar to our expansion into original films, animation and unscripted TV.”
“Games will be included in members’ Netflix subscription at no additional cost similar to films and series. Initially, we’ll be primarily focused on games for mobile devices. We’re excited as ever about our movies and TV series offering and we expect a long runway of increasing investment and growth across all of our existing content categories, but since we are nearly a decade into our push into original programming, we think the time is right to learn more about how our members value games.”
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