Netflix Stock is Close to Fresh Record on Subscriber Growth
Netflix stock price has gained fresh upside momentum in the past couple of days as analysts see substantial subscriber growth in the coming days. The latest Piper Sandler survey indicated that subscribers are intended to keep subscriptions of the streaming giant even if the COVID-19 spread ends.
“Netflix has furthered its position as the go-to streaming option. Pandemic gains in subscribers were just the acceleration of the ongoing shift from broadcast TV,” the firm says.
The survey also shows more than half of respondents are comfortable with Netflix subscriptions despite potential price hikes.
Credit Suisse has also been confident in the future fundamentals of streaming giant. The firm expects higher than expected subscriber growth for the third quarter.
Netflix downloads are still outperforming the peer’s growth. Netflix downloads quarter to date stood around 27 million compared to 18 million downloads for Amazon and 7 million for Disney Plus.
The competition is, however, tough in the United States. Netflix downloads are at 4.2 million compared to 4 million for Disney Plus and 3 million for Hulu.
Netflix has also been beating competitors in the screen-time lead, with a 34% share quarter to date. This is up from YouTube’s 20% and Hulu’s 11%. The screen time for Amazon and Disney Plus is at 8% and 4%, respectively.
The market analysts say subscriber growth among older cohorts at Netflix is likely to fuel user growth in the long term.
Netflix stock price is currently trading around $530, down from a 52-weeks high of $570. Bernstein has provided a price target of $570, with an outperform rating.
“Netflix’s 5.7M new subs in the U.S. and Canada in the first half was growth largely fueled by older age cohorts, Bernstein analyst Todd Juenger says – “a lot of growth for a market that was already supposedly saturated.”