The prospects of Netflix Inc. (NASDAQ:NFLX)Stock remain ambiguous, since there are two opposing observations in this regard. Evercore has given the company a Sell Rating, however in contrary to this opinion StifelFinancial Corp (NYSE:SF) has come up with a bullish stance in favor of NetflixInc. (NASDAQ:NFLX).
The financial results of the past few months have witnessed volatility inNetflix Inc. (NASDAQ:NFLX)stocks. For some investors Netflix Inc.(NASDAQ:NFLX)isn’t the ideal choice for long-term investment. Yet, still there are others out there who pay heed to the company’s global expansion possibilities and its likely growth in future.
The opposing stances of EvercorePartners Inc. (NYSE:EVR) and StifelFinancial Corp (NYSE:SF) are a potent example of this very diversity in opinion.
A report was launched by EvercorePartners Inc. (NYSE:EVR) in this week, in which the sell-side analyst firm brought Netflix Inc.’s (NASDAQ:NFLX)stock from a rating of Hold to Sell. In support of this opinion, the firm stated that pressures on the subscription video on demand (SVOD) market are building up. To cope up with these pressures, higher investments are required. Furthermore, the returns from these investments cannot be guaranteed and remain uncertain. The previous target price on the stock was $380 per share and the firm brought it down to $70.
After the launch of this report, another report concerning the stocks of Netflix Inc.(NASDAQ:NFLX) came forward by StifelFinancial Corp (NYSE:SF). This report suggested that redundant concerns highlighting competitive pressures are rather exaggerated. David Scott, an analyst at StifelFinancial Corp (NYSE:SF), claims that these fears of intensification of competitive pressures have acted as the pivotal reason in action behind the decline, amounting to approximately 10%, in Netflix Inc.’s (NASDAQ:NFLX) shares. He further added that these fears are overdone since Netflix Inc.(NASDAQ:NFLX) continues to stand in the same position and with the same strength; rather it is becoming stronger owing to the incorporation of more content.
A recent trend of media and technology companies coming forward with their own SVOD services has placed a question mark on Netflix Inc.’s (NASDAQ:NFLX)position is market. HBO has also come up with its very own video on demand service which will probably be launched in April. HBO’s SVOD service has had a lot to do with the going down of Netflix Inc.’s (NASDAQ:NFLX)stock over the weeks.
Yet, Mr. Devitt is of the opinion that HBO’s launch of SVOD provider wouldn’t be affecting the position of NetflixInc. (NASDAQ:NFLX). He further stated that most of the customers, who will go for HBO now, will already be having Netflix, and the most likely possibility is that they would be keeping both, instead of discarding the latter.
He also stated that market has not yet realized the huge potential of expansion and consequent progress which Netflix Inc. (NASDAQ:NFLX)has in its global strategies. In light of this potential StifelFinancial Corp (NYSE:SF)has given NetflixInc. (NASDAQ:NFLX) a Buy rating and has placed a very high target price on the company’s stock amounting to almost $535.
On the other hand, EvercorePartners Inc. (NYSE:EVR) continues insisting that rising competition in market would propel Netflix Inc.(NASDAQ:NFLX)to increase its investments and the outcome of these investments is going to be ambiguous.
