Should Netflix, Inc. (NFLX) Shareholders Worry About The Pirate Bay’s New Streaming Feature?


While Netflix, Inc. (NASDAQ:NFLX) may have made pirated video websites such as The Priate Bay a little bit less popular, a move today by The Pirate Bay may in fact hurt Netflix’s (NASDAQ:NFLX) top and bottom lines.

This weekend The Pirate Bay added a new ‘Stream It’ button which is powered by the Torrents Time plug-in. The plug-in, created by the people behind Popcorn Time, will allow users to stream movies and television shows in a similar fashion to the way they may do currently with Netflix. This means that The Pirate Bay users do not have to download entire movies before watching them. The movie or show will download as the user watches it, saving time, and perhaps driving some individuals away from NetFlix, although probably not many. At a $9.99 monthly rate, Netflix seems to be priced fairly enough that such a feature on a pirate website shouldn’t hurt the company very much.

The stock is trading higher by 1.26% or $1.04 hitting $83.83, despite the rather negative news. About 8.42 million shares traded hands. NFLX has declined 11.97% since July 2, 2015 and is downtrending. It has underperformed the S&P500 by 3.10%.

From a total of 27 analysts covering Netflix (NASDAQ:NFLX) stock, 21 rate it a “Buy”, 0 a “Sell”, and 6 a “Hold”. This means that 78% of the ratings are positive. The highest target price is $175 while the lowest target price is $72. The mean of all analyst targets is $132.33 which is 57.86% above today’s ($83.83) stock price. Netflix was the topic of 40 analyst reports since August 4, 2015 according to the firm StockzIntelligence Inc. Drexel Hamilton initiated shares on January 14 with a “Buy” rating. Credit Suisse maintained shares with a”Neutral” rating and a $124 target share price in their report from an October 15. Robert W. Baird downgraded NFLX stock in a recent report from January 4 to a “Neutral” rating. JP Morgan maintained the rating on October 15. JP Morgan has a “Overweight” rating and a $137 price target on shares. Finally, FBR Capital maintained the stock with a “Outperform” rating in a report they issued on an October 15.

The institutional sentiment increased to 1.54 in Q2 2015. It’s up 0.29, from 1.25 in 2015Q2. The ratio improved, as 58 funds sold all their Netflix, Inc. shares they owned while 194 reduced their positions. 149 funds bought stakes while 238 increased their total positions. Institutions now own 639.63 million shares which is 1081.93% more than the previous share count of 54.12 million in 2015Q2.

Srs Investment Management Llc holds 40.42% of its total portfolio in Netflix, Inc., equating to 11.81 million shares. Technology Crossover Management Vii Ltd. owns 5.04 million shares representing 34.23% of their total US portfolio. Moreover, Ctc Llc has 33.44% of their total portfolio invested in the company, equating to 645,718 shares. The Pennsylvania-based Barton Investment Management has a total of 29.76% of their portfolio invested in the stock. Tiger Global Management Llc, a New York-based fund reported 18.00 million shares owned.

Since February 25, 2015, the stock had 0 insider buys, and 11 selling transactions for a total of $32.60 million in net activity. Barton Richard N sold 2,800 shares worth $281,260. Hastings Reed sold 86,037 shares worth $8.68 million. Battle A George sold 49,000 shares worth $5.29M. Cranz Tawni sold 1,512 shares worth $190,179. The insider Peters Gregory K sold 6,545 shares worth $841,491.

Netflix, Inc. is a provider of Internet television network. The company has a market cap of $33.12 billion. The Firm has over 57 million streaming members in over 50 countries. It has 298.55 P/E ratio. The Company’s members can watch more than two billion hours of television shows and movies per month, including original series, documentaries and feature films on Internet-connected screen.