Despite predictions to the contrary, Netflix still has a very bright future, analyst says. | Source: Shutterstock
Netflix (NFLX) is down by over 31 percent from the all-time high of $423.21. From a strictly technical perspective, the stock has already entered bear territory. Even the mainstream media is starting to doubt the company’s ability to sustain its growth.
Forbes published an article in July stating that based on profit estimates and the average industry valuation, the fair value of Netflix stands at $120. Investors may seriously start considering the projection of the business magazine.
The streaming company lost 130,000 subscribers in the U.S. in Q2 after eight years of unstoppable growth.
More importantly, other companies such as Apple (AAPL) and Disney (DIS) are entering the on-demand streaming service area. These media giants are after Netflix’s subscribers. Experts predict that the streaming wars will be in full display in November as Apple and Disney both launch their streaming services in the same month.
It appears that the future looks grim for Netflix. However, a research analyst of a market-leading consulting business believes that the streaming titan will continue to dominate the space.
Disney and Apple to ‘Erode Netflix Market Shares Everywhere’
The next five to six years will be a challenging time for the streaming giant. The company will now face competition from other media companies such as Disney and Apple.
According to Morgan Stanley analyst Benjamin Swinburne, Disney is likely to acquire over 130 million subscribers worldwide by 2024. The analyst also believes that the media company would have 13 million subscribers by the end of 2020.
Estimates for Apple’s TV+ service is not far behind.