We all know that a new product release can greatly affect a company’s stock price.
First comes the announcement, which usually has a bullish influence. After that, a lot hinges on the initial performance of the new product. It can either strengthen the rise or trigger a reversal, especially when teething problems occur. But there’s also the long-term potential of the new release and whether the world will adopt it. After all, Google+ didn’t do any favors for GOOGL stock, and the same can be said for Apple Glasses.
When it comes to streaming services, Netflix is still considered king, and this is reflected in its 492.37% rise over the last 5 years.
Now they are branching out to another entertainment industry. Gaming.
Soon, Netflix subscribers will be able to play games on their TV and mobile devices, which invites two questions. First, will Netflix stock prices rocket as we approach the release date? And second, will the gaming platform meet public expectations?
To lead the way in unfamiliar territory, Netflix hired Mike Verdu, former vice president of Facebook’s AR/VR content. Prior to Facebook, Verdu headed up the EA Games Mobile division, which inspires confidence that the final product will deliver.
Information about the type of games that Netflix will host is unavailable at this time, which has stirred curiosity for gamers – but not for traders – and the initial leak barely made a mark on the rising price chart.
Investors are standing by for a news release that will have more definitive information on whether the world will buy into the Netflix vision, or just shrug and open Google Play or Apple Store.
The last time Netflix increased its price, the company’s earning projections spiked and the stock price rocketed, so don’t be surprised if access to the gaming division will require a few extra dollars to the monthly subscription.
With rumors of VR development fueling speculation of a new evolution in gaming, there’s likely a lot of people prepared to pay that little bit extra. If Netflix can pull it off, there seems to be only one direction the stock will go.
Recently, NFLX hit a $589+ all-time-high, so traders are now wondering if a crash will precede a hype spike. Patience and research seem to be the only suggestion for now, but we recommend you keep your finger on the Netflix pulse and be ready to act at the first signs of a new trend.