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Netflix CEO Reed Hastings speaks during Netflix Slate Event 2018 at JW Marriot on October 9, 2018 in Bogota, Colombia.
Wall Street analysts are squarely focused on what Netflix has to say about subscriber growth, price hikes, and its rivals launching streaming services, when the company reports earnings after the market close Tuesday.
Shares of Netflix are up over 30 percent year-to-date.
“Sell-side consensus international paid subscriber expectations are 24.4 million and 24.8 million net additions, respectively, vs our estimates of 27.4 million and 27.5 million,” wrote Deutsche Bank analyst Bryan Kraft who also upgraded the stock Wednesday and raised his price target.
“The idea that consumers will choose Disney+ over Netflix seems unrealistic, unless a given consumer’s use case for having Netflix has been limited to watching Disney films,” he said.
“We see limited scope for a negative surprise on domestic [subscriptions] in 1Q or 2Q guidance, despite concerns about price hikes and competition, ” Bank of America analyst Nat Schindler wrote. “We would see any dip on either issue as a particularly attractive buying opportunity because we do not view Disney as the competition,” he said.
Analysts at KeyBanc also seemed skeptical that any of the new competition would pose much threat to the streaming giant subscriber results. “While other services may carve out valuable add-on positions, we do not expect the launch of new services from Apple, Disney, AT&T, or others to meaningfully impact Netflix..”
“We continue to view Netflix’s strategic positioning very favorably,” they said.