Today it's all about Netflix seems - on Tuesday Netflix Inc (NASDAQ: NFLX) announced a price increase for its subscribers: Existing subscribers pay only $ 9.99 to get unlimited streaming access and some DVD-ROM drive.
New subscribers must now pay for streaming ($ 7.99) and an unlimited number of DVD-ROM ($ 7.99) separately, since September 1, everyone will be burdened with this transaction.
Thus, good or bad for sharesAnalysts NetFlix Netflix mixed decision to raise prices. Goldman Sachs reiterated a "buy" rating and $ 330 price target on the stock, saying, 5% jump in streaming only subscribers can increase revenue per subscriber to $ 11.96, providing Netflix can sustain 18% of the outflow.
Piper Jaffray reiterated "overweight" rating on the stock while raising its target price to $ 330 from $ 305, saying the average revenue per subscriber could rise to $ 12 per month in September to $ 11.27 per month in the first half of the year . Or not, Netflix subscribers lose because of this annoucement (which I think they will), the uncertainty in all this should make investors think twice before carrying out the action at these levels.
Netflix is not the only option for consumers. Blockbuster movies service gets faster than Netflix - it also includes video games. Amazon and Redbox Coinstar are several others that provide a healthy compeition to Netflix.
Only time will tell if the bladder, which is the share price will be an explosion of Netflix. If you want to join in the opposite direction, look at the December 17 Puts. $ 270 strike, where I'd put my money
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