Can Netflix Handle Competition? Market Appears Concerned
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Netflix, Inc. (NASDAQ: NFLX) shares are trading lower by $11.60 at $649.33 in Monday's session. The S&P 500 index's top-performer year to date has been under selling pressure since the open.
Now, along with Amazon.com, Inc. (NASDAQ: AMZN)'s Prime service and others, there are multiple threats to Netflix's dominance in the space.
The reported announcement by Alibaba on Sunday appeared to instigate a sharply lower opening for Netflix shares, which started near $650 versus Friday's close of $660.93. The momentum continued to the downside as it traded lower until it finally found support at $641.61.
That marks the lowest point for Netflix since it bottomed last Tuesday at $625.34 on its way to its all-time high that was made the following day at $692.70. The stock's all-time high close is $671.10.
Since hitting that level, the stock is poised to post its third straight daily decline.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.