Credit Suisse believes shareholders in streaming giant Netflix can breathe a sigh of relief. The agency said Netflix did not lose significant subscribers since the launch of Disney’s streaming service, based on app download data.
Douglas Mitchelson, an analyst at Credit Suisse, said data analysis by mobile app data companies Sensor Tower and Google showed that the launch of Disney Plus had had little impact on the trend among Netflix subscribers. Analysts believe that the market’s concerns about Netflix’s rivals are already fully reflected in the share price.
Credit Suisse currently has a buy rating on Netflix, with a target price of $440, up more than 45 percent from Wednesday’s closing price of $302.6.
Credit Suisse’s report is in line with Wall Street expectations, and most analysts don’t expect Netflix to lose many subscribers as a result of the launch of Disney Plus. Investors, however, did not see it that way, selling the stock in the second half of the year. Netflix has fallen nearly 15 percent in the past six months.
Netflix dominates the streaming war, but faces increasing competition from Disney Plus, Amazon Prime Video, NBC’s Peacock, HBO Max and Apple TV.
“Global streaming competition is a marathon, not a sprint, and it’s too early to draw a conclusion with limited data,” warns Mitchelson. “