Disney recently announced a MAJOR competitor in the streaming space offering a very cheap monthly streaming service of $5.99 or something stupid low (I forgot). This is going to be a hit. There is no way around it. No ands, ifs, or buts. Every “family” with children in America is going to be paying $6 a month for cartoons that can be watched all the time, at any time. Check out the reaction once this was announced. Long term breakout to the upside.
This is going higher, I wrote about targeting 180+ on this break up (before the breakout lol) So what does this mean for Netflix? Well, for one thing it is not going to be raising prices anytime soon. The days of them raising are over now that major competition has entered the space. They may even have to lower prices. I am looking at the chart of NFLX and there does not seem to be any damage done and that may be because the best NFLX programs are FAR FROM the Cartoon category. I believe that they are both buys here. DIS is a no brainer buy from that breakout and NFLX is now holding higher and breaking above 365-370. As long as NFLX stays above 365 I believe you should be long.