Netflix Stock Inches Towards Another All-Time High
Lockdowns may have eased in some parts of the world and theaters may be reopening, but for a lot of people Netflix has become the go-to when it comes to entertainment in the age of the global coronavirus pandemic. No wonder then that the stock price of the streaming giant continues to rise.
The Hollywood Reporter reveals that the stock price for Netflix closed higher by 11.6 percent at $547.53, with the stock price even going as high as $549.04 during the day. Previously, the highest price Netflix stock reached was $548.73 back in July.
The boost in the stock price comes from a recently released Piper Sandler survey that measured the satisfaction of 1000 Americans with regards to the streaming services they have at home. Of those surveyed, 41 percent said they would keep their Netflix subscription even after coronavirus-induced lockdowns are lifted.
Netflix also looks good when measured against its competition. In the same survey, only 28 percent of Amazon Prime Video intended to stick with the service. Meanwhile, 17 percent of Disney+ subscribers intend to use the service after the lockdown. Nineteen percent of cable television subscribers will continue to use the service after the lockdown, while only seven percent of HBO Max users intend to stay loyal.
Even better for Netflix, a separate Piper Sandler survey of 600 people revealed that a “majority” of Netflix subscribers would be willing to absorb a price increase in the future.
The last time Netflix stock hit an all-time high was back in July, due in part to coronavirus-induced lockdowns making it essential entertainment. Analysts then also noted that the streaming service’s huge library protected it from production stoppages brought about by the global coronavirus pandemic.
Netflix is not the only winner when it comes to stock prices. Deadline reports that the streaming firm Roku also enjoyed an 11 percent increase in its stock price after an analyst gave the stock a “buy” rating.
Citibank analyst Jason Bazinet predicted that Roku’s stock price could rise as high as $180, with the prices at the latest trading session closing at $164. Bazinet also told clients that Roku’s subscriber base of 40 million is likely to grow to as high as 125 million.
Stock prices for these streaming services are likely to only rise higher as it does not look like the global coronavirus pandemic is going to slow down any time soon. According to the Aug. 26 update of the World Health Organization’s COVID-19 dashboard, there are currently 23,752,965 confirmed COVID-19 cases around the world. Deaths caused by COVID-19 are now at 815,038 people.