Netflix stock holds steady in wake of Disney+ launch

New York Post Finance 3 weeks ago

Wall Street’s reaction so far to Walt Disney Company’s long-awaited streaming service suggests investors believe the competition may not be as crushing as expected for entertainment rival Netflix.

Shares of Disney have surged 8 percent since the launch of Disney+ a week ago, helped along by 10 million sign-ups for the service in its first day. But during the same period, Netflix’s stock recovered from an initial slump and is now up nearly 3 percent, with some investors betting the two companies’ streaming offerings may be able to coexist.

On Monday, Disney rose 2.1 percent to $147.65, just shy of its record high close on Nov. 13, while Netflix climbed 2.6 percent to its highest close since August.

“I’m a consumer of both services and I can tell you that what my kids watch on Netflix is not what they watch on Disney+. Now I get it, and the market is reacting to that, appreciating the shares of both companies,” said King Lip, chief investment strategist at Baker Avenue Asset Management in San Francisco.

Baker Avenue owns shares of Disney and recently began buying Netflix shares.

Investors for months have viewed the looming launch of Disney+ as the most dangerous challenge yet to Netflix’s dominance of an increasingly crowded video streaming market. Disney’s stock has risen 27 percent since April when Disney+ was unveiled, while Netflix remains down 18 percent.

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