Market Overview

BTIG Disagrees With David Einhorn, 'Netflix Is Consciously Trying To Spend In The Near-Term'


Comcast Corporation (NASDAQ: CMCSA) announced on Monday that it will be launching its own streaming service, Stream.

Rich Greenfield, BTIG media & technology analyst, was on CNBC to discuss how Comcast's entry into the streaming service will impact other players in the space. Greenfield also discussed why David Einhorn's Greenlight Capital is wrong in considering Netflix, Inc. (NASDAQ: NFLX) overvalued on back of its recent dismal quarterly performance, which the hedge fund mentioned in its latest letter to investors.

Benefits Everyone

"Anything that encourages more consumers to leave the $70-80 a month bundle plus the cost of a box," Greenfield said, "so you're talking even more than that. Anything that knocks that is great for all streaming services including Netflix. So as that bundle frays, it really frees up a tremendous amount of consumer dollars to spend on HBO Now, Comcast Stream, Netflix, Hulu -- you name it."

Related Link: David Einhorn: Micron Will Be Worth More Than Netflix, Intuitive Surgical Short Covered, Apple Still No. 1

He continued, "I think the big opportunity -- remember a 100 million people take the essentially take the multi channel bundle -- as that number starts to come down and you have all of this disposable income to put towards these much cheaper services, that's the big subscriber opportunity. That's why Netflix is so compelling right here."

Disagree With Einhorn

Greenfield explained why BTIG disagrees with David Einhorn's Greenlight Capital, saying, "All of it just creates consumers choice and when you bring that back to the consumer, that's why Netflix is moving so fast. That's where we disagree with Greenlight from the standpoint of this is not an earnings miss."

"Netflix is consciously trying to spend in the near-term to capture market share. They see a very big opportunity to gain market share. They are trying to do and execute what they've done domestically and expand that overseas. Otherwise they will be generating a significant amount of earnings," Greenfield said.

Latest Ratings for CMCSA

Aug 2020CitigroupMaintainsBuy
Jul 2020Morgan StanleyMaintainsOverweight
Jul 2020RosenblattMaintainsBuy

View More Analyst Ratings for CMCSA
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