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Netflix, Apple surge as streaming war intensifies; Slack up on user growth

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Netflix, Apple surge as streaming war intensifies; Slack up on user growth

Shares in Apple Inc. and Netflix Inc. notched gains for the week ended Oct. 11 as the players geared up for a potential streaming battle. Meanwhile, Slack Technologies Inc. stock inched up after the enterprise messaging company touted its growth in daily active users.

Goldman Sachs analyst Heath Terry in an Oct. 10 research note thumbed up Netflix's growth prospects, even as the streaming market becomes increasingly crowded. The analyst noted that despite strong competition coming from the likes of Hulu LLC, HBO / Cinemax (US), Amazon.com Inc. and YouTube LLC, Netflix continued to deliver strong net subscriber additions.

Terry also believes Netflix's relative value — or its price divided by the content consumed — "far exceeds" any of the current or planned streaming services set to launch in the coming months, making it "unlikely" that Netflix will be replaced as consumers' top streaming choice.

Apple is set to launch its Apple TV+ subscription streaming service Nov. 1 for $4.99 per month. It will feature exclusive original video content from A-list celebrities and will be offered free for one year to consumers who buy new iPhone, iPad, Mac or Apple TV devices. The Walt Disney Co.'s Disney+ streaming service is set to launch Nov. 12 for $6.99 per month.

Netflix shares were trading at $284.53 midday Oct. 11, up 4.30% from their Oct. 4 close.

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Turning to Apple, Wedbush Securities analyst Daniel Ives countered Goldman Sachs, saying the iPhone maker's upcoming streaming offering could steal market share from Netflix.

Ives in an Oct.11 research note upped his price target on Apple stock to $265 from $245, while reiterating his "outperform" rating. He said Apple's robust global iPhone user base could help the company gain 100 million new consumers through its streaming service in the next three to four years.

Ives said Apple's lower-priced offering, coupled with the company's "massive" user base could disrupt about 10% of Netflix's target customer base within the next 12 months to 18 months.

Netflix's monthly streaming fees range from $8.99 to $15.99.

Around midday Oct. 11, Apple shares were trading at $234.31, up 3.22% for the week.

Turning to Slack, the company on Oct. 10 revealed its number of daily active users has increased 37% from a year earlier.

In a blog post, the San Francisco-based company said over 12 million people used the product daily in September, up from more than 10 million as of the quarter ended Jan. 31, the most recent number the company disclosed.

Slack made its public market debut in June, opting for a direct listing rather than a traditional IPO. Direct listings allow company shareholders to sell shares directly on an exchange with pricing based on market demand. By comparison, traditional underwritten IPOs are priced by banks that ensure demand by buying shares that are then sold to clients.

Slack stock was trading at $25.25 around 12 p.m. ET on Oct. 11, up 1.12% from its Oct. 4 close.