Netflix Ad Tier Gains Traction: What's Going On With Shares Today?
Portfolio Pulse from Shivani Kumaresan
Netflix Inc. (NASDAQ:NFLX) shares opened lower by 1.5% on Wednesday. The company is projected to report the smallest subscriber growth in five quarters for April-June, but its new ad-supported tier has shown revenue growth. Ad income is expected to more than double, and revenue is anticipated to increase by 16.4% to $9.53 billion. Seasonal factors and competition from Disney+ may impact viewership. Netflix has formed partnerships with Comcast and plans to build an in-house ad technology platform. Investors can gain exposure via ETFs like GGME and FEPI.
July 17, 2024 | 1:45 pm
News sentiment analysis
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NEGATIVE IMPACT
Netflix plans to build an in-house ad technology platform, transitioning from its reliance on Microsoft for the ad tier infrastructure.
Netflix's move to build its own ad technology platform could negatively impact Microsoft's ad tier infrastructure business.
CONFIDENCE 65
IMPORTANCE 40
RELEVANCE 20
NEUTRAL IMPACT
Seasonal factors and competition from Disney+ are likely to impact Netflix's viewership. This could also affect Disney's streaming service performance.
While the news primarily focuses on Netflix, the mention of competition from Disney+ suggests potential impacts on Disney's streaming service performance as well.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Investors can gain exposure to Netflix stock via REX FANG & Innovation Equity Premium Income ETF (FEPI).
The ETF provides a way for investors to gain exposure to Netflix, but the direct impact on the ETF's performance is less clear.
CONFIDENCE 60
IMPORTANCE 30
RELEVANCE 10
NEUTRAL IMPACT
Investors can gain exposure to Netflix stock via Invesco Next Gen Media And Gaming ETF (GGME).
The ETF provides a way for investors to gain exposure to Netflix, but the direct impact on the ETF's performance is less clear.
CONFIDENCE 60
IMPORTANCE 30
RELEVANCE 10
NEUTRAL IMPACT
Netflix shares opened lower by 1.5% due to projected slowest subscriber growth in five quarters. However, the ad-supported tier has shown significant revenue growth, with ad income expected to more than double. Revenue is anticipated to increase by 16.4% to $9.53 billion.
Despite the slower subscriber growth, the significant increase in ad revenue and overall revenue growth are positive indicators. However, the immediate market reaction is negative, likely due to the slower subscriber growth.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Netflix has formed bundling partnerships with companies like Comcast to expand its reach. This partnership could benefit Comcast by attracting more subscribers.
The partnership with Netflix could positively impact Comcast by attracting more subscribers and enhancing its service offerings.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 30