Amazon Fever Is Killing Netflix Stock
Netflix stock took a nosedive on Thursday, closing down nearly 11 percent to $113.19 a share--just 15 days ago it closed at $208.75. The plummet comes a day after the announcement of Amazon's Kindle Fire which comes preprogrammed with a free 30-day trial to the Amazon Prime streaming service and the spreading of rumors that Microsoft is working with Comcast and Verizon on a new streaming service for the X-Box. Blockbuster also announced a new partnership with Dish Networks that offers subscribers their Netflix-like offering at a lower price. Analysts say the market has doubts about whether Netflix can hold their own. "I think people are concerned about the competitive pressures," Eric Wold at Merriman Capital told Reuters. "As more competitors add content and add new ways for consumers to access that content, it could pose a risk to Netflix." The past few weeks have been murder for Netflix who hiked their prices in July and announced this month that they were spinning off their DVD-by-mail business into a separate company called Qwikster. Plenty of people think the spiraling stock price could be another sign that is curtains for the long-time pioneer in streaming video service, but as Seeking Alpha points out in a numbers-heavy post, now might also be a good time to get a great bargain on Netflix stock.
