Netflix (NFLX) is the raging bull. Buoyed by its extreme optimism over the streaming giant, GBH Insights today raised Netflix’s price target to $500 from the previous target of $400, an upside of 28% from the close on Monday. According to CNBC, the price target of $500 represents the highest, compared to the other price targets set by analysts covering the stock.
In a note, technology research head Daniel Ives stated that the optimism on the stock is spurred by the fact that Netflix users spend almost double the time on their streaming services, compared to the users of its rivals. While Netflix users on an average spend 10 hours on the streaming service per week, it’s around 5 hours for the users of Amazon (AMZN) and Hulu.
Related: Netflix suffers first massive global outage
Ives also said that nine in 10 Netflix users are ready to spend more on the service, thanks to some popular shows including 13 Reasons Why, Luke Cage and Jessica Jones. Continuing with its “highly attractive” rating, the firm added that Netflix’s global expansion plans hold a lot of promise.
Netflix is currently in a prime position to tap into the international streaming market, which would have an estimated size of 700 million subscribers in the next two years.
The streaming giant is currently the second-best performer in the S&P 500 index – the stock has almost doubled in value so far this year. Piper Jaffrey had earlier raised Netflix’s price target from $367 to $420 on high hopes of subscriber growth.
Netflix shares were trading up 1% at $394.45 at 10:30 AM ET on Tuesday.
Most Popular
ADBE Earnings: Adobe Q1 2024 revenue and profit beat estimates
Design software maker Adobe Inc. (NASDAQ: ADBE) on Thursday reported an increase in first-quarter 2024 revenue and earnings. The results also surpassed analysts' forecasts. First-quarter revenues came in at $5.18
Earnings Preview: FedEx (FDX) likely to report higher revenue and profit for Q3
FedEx Corporation (NYSE: FDX) delivered positive earnings performance and margin expansion in the first half of fiscal 2024, despite lower revenues. The cargo giant has been on a path of
Key takeaways from Dollar General’s (DG) Q4 2023 earnings report
Shares of Dollar General Corporation (NYSE: DG) fell over 4% on Thursday despite the company delivering better-than-expected earnings results for the fourth quarter of 2023. The top and bottom line numbers