June 19, 2018
NEWS ANALYSIS — When Netflix recently announced an original content deal with former President Barack Obama and his wife Michelle, some conservative subscribers turned to social media calling for a boycott of the SVOD pioneer.
Apparently, Wall Street wasn’t paying attention.
Netflix’s stock June 19 closed up nearly 4% at a record $404.98 per share – the first time the service topped $400. Shares are up more than 110% this year with a market capitalization above $176 billion.
The result has some analysts revising Netflix’s stock price target ceiling to $500. GBH Insights, citing internal research, found that Netflix subscribers stream twice as much (10 hours) per week compared to Amazon Prime Video and Hulu (5 hours), according to MarketWatch.
PiperJaffray upped Netflix’s price target to $420 per share based on projections international subs will increase nearly 50% in the second quarter.
“Netflix is the leader in a [OTT video] category that contains massive multiyear growth potential,” analyst Michael Olson wrote in a note.
Research firm Monness, Crespi, Hardt & Co. increased Netflix’s stock price target to $460 from $375, despite the fact Disney is readying a branded SVOD service for 2019 launch.
“Given Netflix’s leadership position in the market, growing scale, rapid growth and subscription-based model, we believe investors will continue to pay a premium for the stock,” wrote analyst Brian White.