- Netflix shares surged to a record high of $US449 per share on Thursday after gaining roughly 20% through the week on strong demand and analyst praise.
- Shares jumped more than 7% on Monday despite a broad market slide, while Tuesday and Wednesday’s sessions saw gains of 4.2% and 3.2%, respectively.
- A price-target boost from Goldman Sachs helped drive shares as much as 5.3% higher in Thursday trading.
- The streaming giant’s popular new shows like “Tiger King,” coupled with strong demand amid stay-at-home activity, set it up for strong subscriber growth “both in the immediate and long term,” the team of analysts wrote.
- Watch Netflix trade live here.
As most stocks have only started clawing their way to pre-pandemic highs, Netflix recently joined the small club of stocks to soar amid worsening economic conditions.
The streaming company traded as much as 5.3% higher to a record $US449 per share on Thursday, adding to an already momentous weekly streak. Monday saw the stock gain more than 7% despite a broad market downturn, and a mix of investor optimism and analyst praise fuelled additional gains in the sessions since.
Tuesday and Wednesday saw shares jump about 4.2% and 3.2%, respectively, as market rebounds and selective buying aided firms best-positioned to grow amid the coronavirus lockdown.
Netflix traded 3.4% higher to $US441.31 per share at 12:15 p.m. ET Thursday. The entertainment giant is up roughly 38% year-to-date, compared to the S&P 500’s 13% slump in 2020.
Goldman Sachs is the latest firm to recommend buying shares. The bank’s analysts boosted their 12-month price target for Netflix to $US490 on Thursday, naming it as one of the few businesses seeing stable demand amid widespread social distancing behaviour. Popular new programming including “Tiger King” and a third season of “The Ozarks” further lifted shares, the bank said.
“Content additions to the platform, combined with the value of Netflix’s library to those staying home during the COVID-19 crisis, drove this outperformance, more than offsetting the lingering impact of last year’s price increase and growing competition in [streaming],” the team led by Heath Terry wrote in a note.
The health crisis is also accelerating the yearslong shift from traditional content outlets like TV and movie theatres to streaming services, the analysts said. Netflix’s position as the oldest and most established firm in the segment sets it up for boosted subscriber growth “both in the immediate and long term,” Goldman said.
The company is scheduled to announce its first-quarter results after the market closes on April 21.
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