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BEAR NETFLX X3 V2

  • Symbol BEAR NETFLX X3 V2
  • ISIN DE000VS0EYB2
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3X Short Index linked to Netflix Inc. V3USD 
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Netflix Inc.

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In the first days of 2016 Netflix Inc. surprised with a big announcement, even before publishing 04/15 figures. The streaming service is now available in 190 countries. This means an increase of 130 countries. Because of restrictions of the US Government Netflix is not represented in Russia, North Korea and Syria. Also China belongs to the few, who cannot use the services of Netflix, yet. Strict regulations require a more intensive planning and longer execution. But Reed Hastings, CEO, announced the intention to grow in China, too.

A boost in the equity growth of eight percent, as well as adjustments regarding the target price were reactions of the surprising announcement. The stock’s cash value is two and a half time higher than one year ago. The dramatic change from a delivery service for DVDs to a globally represented streaming service could be one of the many reasons. Besides offering well-known movies and series, Netflix produces own series and movies in a high quality. However, the future development remains to be seen.

The diversification and broad product supply for potential customers could be a prospective fact of staying competitive. The company announced on the CES, one of biggest Consumer Electronics Sows in the world, that more than 600 hours will be added in 2016 to the company’s supply. This broad diversification could explain the role as a direct competitor to established media companies. But Netflix is also facing growing competition. Amazon Fire and Google’s platform YouTube are copying the idea and offer similar services. Both companies take a great interest in powerful distribution platforms.

Despite high costs for an exponential growth and current losses in foreign markets, Bloomberg’s analysts are optimistic and increase the 12-month target price from 123,03 EUR to 124,65 EUR. Currently, 24 analysts set Netflix on buy, 18 on hold and 4 on sell recommendation.

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