By Yasin Ebrahim
Netflix (NASDAQ:NFLX) surged on Thursday as one analyst suggested the streaming giant may be set to win big as Comcast's subscriber losses indicate cord cutting is far from over.
Comcast (NASDAQ:CMCSA) reported a net loss of 133,000 residential video subscribers and warned that the pace of subscriber loss may continue, many of whom may likely turn to Netflix for the streaming needs, said Stifel analyst Scott Devitt
"Comparing Netflix to introductory pricing and/or inferior over-the-top products as a justification for worrying about the competitive climate is missing the fact that the cable, telecom and satellite video industry (where all the money is) is shrinking with no end in sight," Devitt says.
The bullish note on Netflix comes just days after the streaming giant reported better-than-expected quarterly results, but projected weaker subscription additions than expected for the current quarter.
Netflix projected a gain of 7 million paid subscribers worldwide in the first quarter, missing estimates of the 7.82 million.
The company has seen its growth come under pressure as growth in its core U.S. market has slowed at a time when competition has intensified with the arrival of new streaming incumbents like Disney+ and Apple (NASDAQ:AAPL) TV.
