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Netflix shares rise 7% on the back of the report that Comcast lost subscribers

One of the greatest talking points right now are the market shares of Netflix and we know that analysts have been hot and cold regarding Netflix. On some occasions, we see that the market tends to favour ‘buy’ rating for the Netflix shares whereas, on other occasions, Netflix shares are getting a ‘sell’ rating. Now, we are also aware that Netflix shares are also not doing quite well after their revelation that they are looking at a tough start to 2020.

This is because of the competition from Disney+ which has had the most successful start for any streaming platform that we have seen so far. Now, Deadline reports that a new report has brought Netflix shares back up on Wall Street and by a margin of 7% as well. This report is regarding Comcast and revelation that Comcast has lost subscribers. The company also revealed that they expect their loss of subscribers to continue. Due to this uptrend, Netflix stocks closed the day at $349.60 on nearly triple its normal trading volume. This also means that Netflix had a six-month high in terms of their stock prices.

We know that Comcast’s streaming entry Peacock, similar to Apple’s Apple TV+ and Disney’s Disney+, will release in April of this year. Also, Comcast CEO says that they have great optimism towards Peacock and its potential to lift its entire business too. As per Comcast’s report, Subscriber losses of 133,000 in the period rose exponentially from just 19,000 in the year-ago quarter. Stifel analyst Scott Devitt who now has a “buy” rating for Netflix stocks says that Netflix’s most popular $13/month plan will be undercut by players such as Disney+ and Peacock but he is still bearish about the new players.

He also said that “Comparing Netflix to introductory pricing and/or inferior over-the-top products as a justification for worrying about the competitive climate is missing the fact that the cable, telecom, and satellite video industry (where all the money is) is shrinking with no end in sight,”

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