Netflix's Europe expansion seen eating into profits

(Reuters) - Netflix Inc's planned expansion in Europe would set the video streaming company up for growth, but would increase content and marketing expenses in the near term, analysts said. At least 14 brokerages raised their target price on the company's stock by as much as $75 to a high of $550 on Tuesday, a day after the company said profit more than doubled in the quarter ended June 30. Netflix said it planned to expand into Germany, France, Austria, Switzerland, Belgium and Luxembourg in September, taking its international addressable market to more than 180 million broadband households — double the current U.S. market. Netflix, which now has over 50 million subscribers, is already present in European countries such as the UK, Denmark, Norway, Sweden and Finland.

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