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Netflix will have 90 million US subscribers in less than a decade: Research firm

If you thought Netflix (NFLX) has reached the threshold of growth in the home market, you are probably wrong. Highlighting its confidence in the online streaming giant, research firm Bernstein today stated that it expects Netflix to achieve US subscriber base of 90 million in less than 10 years. The mammoth figure comes at the higher end of Netflix’s own estimate of 60 to 90 million subscribers for this period. The company has about 57 million customers in its home market at present.

The predictions were made by the research firm after conducting a survey last month. Bernstein added that the figure may seem far-fetched to many investors as the pay-TV market reached its threshold at 100 million customers in the US.

While there are no arguments on Netflix’s potential of sweeping a growing global market, there were speculations that the US market has reached its peak with the company’s growth slowing in the recent quarters.

Related: Netflix price target raised to $500 from $400

Bernstein had earlier predicted that Netflix would reach around 87 million subscribers by the end of 2030, but now feels the company may achieve this target much earlier. The survey result comes on the heels of GBH Insights raising the price target of the company to $500 from $400, buoyed by the fact that binge-watchers spend double the time on Netflix than its rivals. Bernstein, meanwhile, has a price target of $372 with an outperform rating.

Netflix recovers from Monday’s fall

On Monday, Netflix shares tumbled 6.5% along with numerous other tech stocks, in its worst stock performance in two years. The company recovered from some of the losses, gaining 4.2% in the early trading today.

Monday’s stock crash was spurred by trade war fears after President Donald Trump announced his plans to curb foreign investments in US tech firms. Semiconductor stocks bled badly, with Micron (MU) down 7% and AMD (AMD) and Nvidia (NVDA) down 4% each.

Related: Why semiconductor stocks tumbled today?

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