Netflix (NFLX): The War With Amazon Heats Up - Wedbush
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Wedbush analyst, Michael Pachter, reiterated his Underperform rating on shares of Netflix (NASDAQ: NFLX) noting that the company's delay of the price increases scheduled for May created a lingering problem with investors - slowing domestic growth that will likely persist for another quarter as it "un-grandfathers" as many as 15 million more domestic subscribers over the next two months.
Additionally, the analyst thinks that Netflix's current share price fails to address the potential for meaningful competition from Amazon, (NASDAQ: AMZN) which recently launched a video-only subscription option of its own. Netflix has a much more powerful brand for SVOD, but it seems that with its new standalone service, Amazon has declared war on Netflix.
price target of $50.00
Shares of Netflix closed at $99.50 yesterday.
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