Netflix’s stock rises toward another record, extending market cap gains above competitors Disney, AT&T
- 10th July 2020
- Posted by: Hakeem
- Category: Stock
Shares of Netflix Inc. NFLX, 2.55% rallied 1.4% in morning trading Friday, to trade in record territory, after an upbeat research note from Jefferies analyst Alex Giaimo. The stock closed Thursday at the fourth record so far this month. The streaming video company now has a market capitalization of $226.5 billion, above the market caps of competitors such as Walt Disney Co. DIS, 0.59% at $213.3 billion, AT&T Inc. T, 0.41% at $212.1 billion and Comcast Corp. CMCSA, 0.26% at $180.0 billion. Giaimo said a survey of nearly 1,500 Netflix subscribers showed that 90% of Indian subscribers and 70% of U.K. subscribers were will to pay more for subscriptions, while U.S. subscribers appear more “tapped out.” The survey also showed that Netflix is favored over competitors, with many citing they prefer Netflix for its original content, which helps mitigate churn and allows for greater control over content spend. In addition, the survey showed that engagement has increased “significantly” since the COVID-19 outbreak, with the percentage of U.S. subscribers watching Netflix for more than 10 hours a week increasing to 38% from 16% pre-COVID-19. Giaimo reiterated his buy rating and $520 stock price target. The stock has soared 59.1% this year, while the S&P 500 SPX, -0.26% has slipped 2.3%.