Walt Disney Magic Is About To Touch NFLX Stock

- June 23, 2016
Source: TDG Research

Source: TDG Research

 

After years of waiting, Netflix Unfortunately, we could not get stock quote NFLX this time.  will soon become the exclusive U.S. subscription television service for Walt Disney’s Unfortunately, we could not get stock quote DIS this time.  new release films. Netflix originally inked the deal back in 2012 to steal Disney from Starz, but had to wait until September of 2016 for Disney’s current contract with Starz to expire. This seemingly forgotten catalyst makes NFLX stock a must-buy for the remainder of 2016.

Why Disney is so important

It’s not just “Disney” that Netflix will get in its exclusive deal. The streaming giant will gain Walt Disney Animation Studios, Pixar Animation Studios, LucasFilm, Marvel Studios and Disneynature. This means Netflix will have new releases like Zootopia, Jungle Book, Captain America: Civil War, and Finding Dory in the very near future.

Not to mention, Netflix will have rights to all those blockbuster titles that fall in the Marvel Universe, Star Wars, and Disney’s never-ending lineup of animated films. Looking ahead to the end of 2016, movies like Doctor Strange, Moana, and Rogue One are expected to be big hits. Netflix will get those too.

Beyond that, Beauty and the Beast, Guardians of the Galaxy Vol. 2, Thor: Ragnarok, a Black Panther film and the next sequel of Star Wars are all potential blockbusters that Netflix can look forward to.

Needless to say, Netflix has never had a lineup of films with such promise as it just gained with its exclusive Disney deal. The partnership instantly skyrockets the value of Netflix’s content, and most likely what subscribers are willing to pay.

NFLX stock seems oblivious

Given that Netflix is gaining exclusive rights to a media company that has controlled 31.4% of the total box office this year, up from 19.8% last year and 14.9% in 2014, you would think NFLX stock would be sitting next to all time highs. After all, with Netflix having exclusive rights to just about all of this year’s biggest films, and future films, the company instantly becomes more appealing to non-Netflix users by offering more value for the service.

Instead, NFLX stock is trading at just $90, or 31% below its 52-week high. What makes this so shocking is that Netflix will be adding Disney content in just a few short months. Therefore, one has to figure that whatever issues have weakened NFLX stock in the last few months are correctable once it begins showing the films that earned Disney more than 30% of the box office market share this year.

Yes, many of the issues I exposed for NFLX stock still exist long-term. However, I am not talking about long-term. I am looking at the immediate future. And when you stop to think of what Netflix will soon gain coupled with the heavy selling pressure in NFLX stock, it becomes apparent that NFLX stock is in fact setting itself up for one hell of a rally, induced by Disney magic itself.

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4 Trackbacks

  1. […] However, I also expect NFLX stock to fully recover its losses by the end of this year, and potentially retest old highs or create new highs as its Walt Disney (NYSE:DIS) partnership goes into […]

  2. […] any content it can get its hands on. However, once that Disney partnership starts in a few months, Netflix will be in a unique situation where 30% of the box office and all the big films are going straight to Netflix […]

  3. […] Netflix, Inc (NASDAQ:NFLX) stock trading at $90 and $100 in June and October, respectively, BNL Finance explained that Netflix stock would return and create new […]

  4. […] Netflix, Inc (NASDAQ:NFLX) stock trading at $90 and $100 in June and October, respectively, BNL Finance explained that Netflix stock would return and create new […]

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