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Netflix shares are up for worst quarter since 2012 as the competition looms

SAN FRANCISCO (Reuters) – Shares of Netflix (NFLX.O) fell nearly 4% on Tuesday and were on their way to the deepest quarterly decline in seven years after two of the analysts have been added to the growing concern about an impending wave of competition from Walt Disney’s (DIS.(N) and other rivals.

FILE PHOTO: players and visitors to rest, to take up the position on Netflix at Europe’s leading digital and games, stock market Game, in which you will get acquainted with the latest trends in the computer gaming scene in Cologne, Germany, August 21, 2019 at the latest. REUTERS/Wolfgang rattay

Netflix has lost 30% since the end of June, and if they fall in to on Monday, it will be the worst quarter of performance for the video-streaming a heavy weight on to the shares since 2012.

Future of streaming services, Disney, and Apple’s (AAPL.D) have added to concerns about Netflix slowing subscriber growth and rising costs, as the increase in the expenditure on the creation of a top-tier series such as “Alien” and “The Crown”.

Seen as the biggest threat to Netflix’s, D+, 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% since the 11th of April, when it unveiled its new service. Apple’s Apple TV, the service will debut on Nov. 1, and to add to the competitiveness of the Amazon.com (AMZN.(O), Hulu and others.

(Image: Netflix’s stock is responding to the increasing levels of competition, here.)

Pointing to increased competition and higher costs, an Important Study on Tuesday slashed its price target for Netflix stock to $350 from $ 515.

“Our new forecasts imply that they are going to react to the contents of, and the costs of gear, by rpm, in order to make their own content, which will enable them to have their subscriber growth and a reduction in the profitability of equipment and the” Hot-analyst Jeffrey Wlodarczak wrote in a client note.

In another report, KeyBanc capital markets, has warned that the poor performance and / or supervision for Netflix’s messages to its third-quarter report on Oct. 16 may be exacerbated by investors ‘ concerns about the long-term growth.

“Just a very, very significant upside in 3Q and is likely to drive a sustainable upside in the stock, and we don’t have much confidence in the results,” KeyBanc equity research analyst, Andy Hargreaves, wrote.

Disney’s stock over the past month it has traded at 23 times estimated earnings, the highest forward earnings valuation since 2004, according to the Refinitiv of the data. If the investor re-assessment of the value of a Netflix, is the future profits, the more it has tumbled to 52, the lowest level since 2011, up from 82 at the beginning of July.

Forty-five of the analysts covering Netflix’s in-stock with an average price target of $410, a decrease of $420 at the end of the month of June. The current target of 60% of Netflix’s current price of $255.

Reporting by Noel Randewich; Editing by Chris Reese

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