Netflix's 2024 Gains Are Cinema's Loss: AMC Shares Slump Despite Box Office Boost From Taylor Swift, Beyoncé
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 01 2024
0mins
Should l Buy NFLX?
Source: Benzinga
- Netflix's Performance: Netflix shares have surged by 24% in 2024 and 93% over the last year, benefiting from taking market share from traditional movie theaters.
- Competitive Landscape: Despite price increases, Netflix remains one of the cheapest streaming services per hour consumed and has outperformed rivals like Warner Bros Discovery and Disney.
- Streaming Industry Impact: Growth in streaming services like Amazon Prime and Apple TV+ has led to a decline in cinema attendance, with many regular cinemagoers shifting to subscriptions during the pandemic.
- Challenges Faced by Cinemas: Cinema operators, including AMC Entertainment Holdings, have struggled due to reduced attendance, financial losses, and lack of major box office hits.
- Future Outlook: The cinema industry faces challenges beyond viewing habit shifts, with hopes pinned on upcoming releases like "Dune: Part Two" to revive interest.
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Analyst Views on NFLX
Wall Street analysts forecast NFLX stock price to rise
38 Analyst Rating
27 Buy
10 Hold
1 Sell
Moderate Buy
Current: 75.860
Low
92.00
Averages
114.18
High
150.00
Current: 75.860
Low
92.00
Averages
114.18
High
150.00
About NFLX
Netflix, Inc. is a provider of entertainment services. The Company acquires, licenses and produces content, including original programming. It provides paid memberships in over 190 countries offering television (TV) series, films and games across a variety of genres and languages. It allows members to play, pause and resume watching as much as they want, anytime, anywhere, and can change their plans at any time. The Company offers members the ability to receive streaming content through a host of Internet-connected devices, including TVs, digital video players, TV set-top boxes and mobile devices. It is engaged in scaling its streaming service, such as introducing games and advertising on its service, as well as offering live programming. It is developing technology and utilizing third-party cloud computing, technology and other services. The Company is also engaged in scaling its own studio operations to produce original content.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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