INTERNATIONAL - Shares of Netflix dropped nearly 4 percent on Tuesday and were on track for their deepest quarterly decline in seven years after two analysts added to growing worries about an impending wave of competition from Walt Disney and other rivals.
Netflix has lost 30 percent since the end of June, and if that decline holds until Monday, it will have been the worst quarterly performance for the video streaming heavyweight’s shares since 2012.
Upcoming streaming services from Walt Disney and Apple have added to worries about Netflix’s slowing subscriber growth and rising costs as it increases spending to create top-tier series like “Stranger Things” and “The Crown”.
Viewed as the most dangerous threat to Netflix, Disney+ is set to launch on Nov. 12, with a slate of new and classic TV shows and movies from some of the world’s most popular entertainment franchises. Disney’s shares are up 14 percent since April 11, when it unveiled its new service. Apple’s Apple TV+ service debuts on Nov. 1, adding to competition from Amazon.com, Hulu and others.
Pointing to growing competition and higher costs, Pivotal Research on Tuesday slashed its price target for Netflix’s stock to $350 from $515.