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The Zacks Analyst Blog Highlights: Netflix, Amazon, AT&T, Disney and Apple

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For Immediate Release

Chicago, IL – October 2, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Netflix (NFLX - Free Report) , Amazon (AMZN - Free Report) , AT&T Inc. (T - Free Report) , Disney (DIS - Free Report) and Apple (AAPL - Free Report) .

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Here are highlights from Monday’s Analyst Blog:

Why Netflix (NFLX - Free Report) Jumped to a Near-3 Month High Monday

Netflix shares surged Monday after a story surfaced that said the streaming TV giant is ready to roll out more choose-your-own-adventure content. Monday’s move is part of a larger climb that should have more investors thinking about buying Netflix stock right now.

Interactive TV

Netflix is set to develop more interactive content, including an upcoming episode of Black Mirror, according to Bloomberg. The streaming TV company’s widely popular dystopian anthology series will feature one episode that allows viewers to decide which direction they want the story to go. Investors should note that Netflix already offers choose-your-own-adventure TV shows. But this interactive content has only been featured in animated, kids-oriented shows, such as Puss in Book: Trapped in an Epic Tale.

Netflix’s first interactive show geared toward adults is due out this December as part of Black Mirror’s fifth season. Black Mirror is critically acclaimed and one of the company’s more popular offerings.

The Los Gatos, California-based company is also reportedly negotiating rights to other live-action interactive projects, which are said to be video game adaptations. Diving into live-action interactive content represents an interesting experiment for Netflix.

The cost to produce live-action, choose-your-own-adventure shows and movies could be much higher. But it is certainly worth some of Netflix’s cash to see if there is a viable market for interactive content as the company competes for consumers in a more crowded streaming TV market.

Overview

The Bloomberg story also comes as NFLX stock climbs back up near its pre-second quarter earnings release highs. Shares of Netflix jumped over 3% during morning trading Monday and hit over $384 per share for the first time since July 17—the day after Netflix reported its Q2 financial results.

Netflix stock tanked in mid-July after the company missed its subscriber forecast by 1 million. Shares of NFLX have slowly climbed after an extended dip, as investors see that the firm is still projected to grow.

Outlook

Netflix expects to add 650,000 subscribers in the U.S. and 4.35 million internationally in the third quarter to bring its subscriber total to just over 135 million. Meanwhile, our current Zacks Consensus Estimate is calling for Netflix’s Q3 revenues to jump by 33.7% to reach $3.99 billion. At the other end of the income statement, Netflix is projected to see its adjusted quarterly earnings soar 134.5% to $0.68 per share.

Netflix is one of the largest streaming TV platforms in the world and looks poised to grow as the streaming market continues to expand. But if the company wants to expand and grab more market share, it will have to create more unique content to stand out against Amazon Hulu, and HBO. This becomes even more paramount as Disney and Apple enter the streaming TV market.  

Netflix is scheduled to release its Q3 financial results on Tuesday, October 16.

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