The year is starting very well for Netflix and its stock. This impressive start can be seen in every single trading session so far. Sure, you could argue there haven’t been much of them, but if we take into consideration the volatility of FAANG stocks (Facebook, Apple, Amazon, Netflix and Google) and the general stock market, Netflix appears to be on a huge winning streak.
The stock market experienced a Bear market in Q4 of 2018 with most stocks falling between 15%-40%. From the beginning of October, Netflix’s shares went down with 39% to $234 per share on December 24th. Today, less than a month later they are trading for 354$ and up by the staggering 51.5%, still remaining below the record value of $418 from July of 2018.
The majority of analysts give bullish predictions on the NFLX stock. Most expectations see the company performing better than its FAANG rivals. The analysts’ confidence is also backed by a growing number of reasons.
Netflix increased by 51.5% since late December
Q3 revenue results and year-on-year reported a $4billion revenue growth figure. Additionally, the company reports a healthy growth of subscriptions in both the United States and internationally. Even company officials are surprised by the rapid expansion in Europe. The subscriber count is projected to have added 9.4 million users globally in Q4 of 2018. Most analysts predicted a growth of about 7 million with the biggest numbers reaching 7.4 million.
Netflix has also won five Golden Globes at Sunday’s awards for original content. The friendly rivals over at Amazon Prime Video managed to pick up “only” two awards. Original shows seem to be working out for Netflix as Ted Sarandos, the Chief Content Officer stated:
“We receive a better payback from people if we create truly original content. The word original is thrown around a lot, but it has begun to lose its meaning. That’s why people value and appreciate Netflix and keep renewing their subscription month after month”
Some financial analysts like David Miller, seem to believe that Netflix is on its way to break apart from FAANG. He stated:
“I would advise most investors to ignore the noise around FAANG and focus on more on core fundamentals. If we look at Netflix, they look quite healthy”
Other analysts are improving their confidence rating in Google. Much like Amazon, Google is set to benefit from the increased digital advertising revenue in 2019. Amazon’s last quarter of 2018 was the worse one since 2008. 2019 is already proving to be an exciting year for the global markets and as usual, those who adapt the fastest, will end up on top.
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