this is what could overload Netflix’s struggling stock – .

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this is what could overload Netflix’s struggling stock – .



What’s happening: Stocks climbed 67% last year, but fell 1% in 2021. The S&P 500, meanwhile, was up 16%.

The growth in the number of subscribers has slowed considerably as more people receive Covid-19 vaccines and competition between streaming services intensifies. The company has also rolled out fewer TV shows and films, due to production slowdowns linked to the lockdown.

Analysts believe Netflix’s second quarter results, expected Tuesday, will not be an improvement. Comparisons will be tough given the company added 10 million subscribers over the same period in 2020. Netflix expects 1 million new customers this time around.

“The pandemic has probably pushed some of the demand forward,” CFRA analyst Tuna Amobi told me.

But Wall Street remains extremely optimistic about the company’s future.
Netflix’s content menu for the second half of the year is expected to garner a lot of attention, according to JPMorgan analyst Doug Anmuth.

” We believe [Netflix] could have his strongest 6-month content list ever, ”he said in a recent note to clients, noting the release of new seasons of“ Money Heist, ”“ Sex Education, ”and“ You. As well as the action movie “Red Notice” starring Dwayne Johnson (aka The Rock).

Netflix (NFLX) is also taking steps to make its product even more valuable to consumers. Last week, Bloomberg announced that the company plans to offer video games on its service within the next year.

Amobi sees it as “a natural progression” for Netflix, even if it is a difficult market to penetrate. UBS estimates that the global gaming market is worth around $ 176 billion.

« [Netflix is] not starting from scratch, ”he said. “They have properties that they can reuse”, helping to “justify some future price increases”.

The company is also exploring new sources of income. Last month he announced he was launching an online store that would sell popular show products like “Stranger Things” – a nod to the model developed by competitor Disney, which makes big money. with its intellectual property with theme parks, t-shirts and plush toys.

“If you’re an IP provider, you don’t want to leave money on the table,” Amobi said.

Another billionaire heads to space

The billionaire space race heats up again this week as Amazon founder Jeff Bezos prepares to take off.

Three, two, one: Bezos will be on board the first crewed flight of the New Shepard, the rocket built by his space company, Blue Origin. The flight is scheduled for Tuesday, just 15 days after Bezos handed the reins of Amazon CEO to Andy Jassy.

Bezos will be joined by his brother Mark, Wally Funk, an 82-year-old pilot, and Oliver Daemen, an 18-year-old high school graduate.

The trip comes after Virgin Galactic founder Richard Branson visited space last week, a historic moment for the commercial space industry.

But don’t expect space tourism to be affordable for the masses anytime soon.

“If you want … to get the price down from $ 250,000 to four digits, like an airline, you have to split [trips] on a lot more bodies, ”Ron Epstein, Aerospace Analyst at Bank of America, recently told my CNN Business colleague Chris Isidore.

following

Monday: NAHB Housing Market Index; AutoNation (A) and IBM (IBM) gains

Mardi: Jeff Bezos goes to space; housing starts in the United States; Philip Morris (PM), UBS (UBS), Chipotle (GCM), Netflix (NFLX) and United Airlines (UAL) gains

Wednesday: Daimler (I go), Coke (KO), Harley Davidson (PIG), Johnson & Johnson (JNJ), Verizon (VZ) and Tourbillon (RTH) gains

Thursday: European Central Bank policy decision; Sales of existing homes in the United States; Unilever (the), American Airlines (AAL), AT&T (T), Domino’s Pizza (DMPZF), Intelligence (INTC), Break (BREAK) and Twitter (TWTR) gains

Friday: Flash PMI data; American Express (AXP), Honeywell (IT) and Kimberly Clark (KMB) gains

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