
Netflix (NFLX) Stock Falls After Hulu Announces Ad Free Streaming Service
NEW YORK (TheStreet) -- Netflix (NFLX) - Get Report shares are down 3.35% to $102.26 in afternoon trading on Wednesday after rival Hulu announced that it was offering ad free streaming of its programs for $11.99 per month.
The Comcast (CMCSA) - Get Report owned Internet television streaming service is putting itself in direct competition with Netflix's subscription service with its new offering.
"There's a whole set of customers that we saw in the research and in the metrics that aren't interested if we have advertising. It's definitely something we're doing to be more competitive in the marketplace, and the only way to do that is to make your product better," said CEO Mike Hopkins.
Hulu already has a premium service that charges $7.99 per month, but viewers are still required to watch advertisements as part of service.
TheStreet Ratings team rates NETFLIX INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate NETFLIX INC (NFLX) a HOLD. The primary factors that have impacted our rating are mixed – some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity."
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