Shares of Netflix Inc increased by 11% before the market was closed on Wednesday when the company shared its worries related to the slowdown in profits. The latter is associated with seven million new subscribers who have joined the service from July to September.
However, the figures released on Tuesday, October 16 showed the company had 137 million subscribers worldwide, which is 2 million more than predicted. Importantly, if you want to use Netflix but have no access to the service, use the Touch VPN to unblock the content.
Market Expectations?
At least 15 brokerage companies have raised the price of market expectations for the company’s shares, including Morgan Stanley, Goldman Sachs, and Raymond James. Goldman Sachs raised its expected price from $50 to $480. Previously, the company lowered this figure from $470 to $430. The situation has nothing to do with cybersecurity; it is more about the company’s ability to wisely manage its investments and company funds.
Since the beginning of the year, Netflix shares have risen by 81% reflecting the stunning investor confidence in the company’s leading role in the streaming video market. However, this growth has made some people wonder whether the Netflix business is so sustainable, given the fact that the company has begun to make huge investments in its own content and competition. For example, analysts of the US Keybanc financial group lowered their Netflix rating to a “significant sector” from the former “very significant,” wondering whether the company will be able to increase its investment income in the coming years.
Before the market closed on Wednesday, the company’s shares rose by 10% and cost increased to the mark of $381.21 per unit. Thus, Netflix exceeded its own forecasts for the domestic and international market, although the majority of new subscribers obsessed with the digital came precisely from abroad, where the company pursues an aggressive investment policy.
Analysts point out a “serious trend” in India due to the potential increase in the number of local subscribers. But there are still skeptics who doubt Netflix’s ability to deal with cable television competition in the country, where it is very popular thanks to its lower cost.
Wait and see
Let’s see what’s going to happen with business protection; anyway, Netflix is rather a risky business for investment at the moment. Before making any decision, it is worthwhile to explore the market and closely monitor the industry for some time. It is highly possible that such a successful service as Netflix will be back on top really soon.