Before Netflix (NFLX) The second quarter earnings report on July 20, UBS The expectation of accelerating subscriptions to streaming media services has raised the company’s price targets.
according to NBC Finance ChannelAnalyst John Hordulik said in a report to customers on Thursday that Netflix will exceed its low guidance for the second quarter, and then its subscriptions will increase in the second half of this year.
The part of the description obtained by the news media read: “The application download indicates [management]In view of the strength of Asia, our guideline for a net increase of 1 million in the second quarter we raised our estimate from 1.0M to 1.9M. We expect the increase in content production and the return of popular series…and tent pole movies…will help drive stronger sub-growth in the future. “
Based on these estimates, Hodulik priced Netflix’s stock at $620 per share, which is higher than $600—a 13% increase from Wednesday’s closing price. According to a CNBC report, UBS also reiterated its buy rating on Netflix in the report.
With the launch of the COVID vaccine and the relaxation of coronavirus restrictions, allowing people to return to their entertainment options away from home, the economy began to recover, and Netflix stock stalled in 2021. In addition, CNBC said that due to pandemic restrictions, the delay in the release of Hollywood movies has caused more struggles for the stock.
In 2020, at the height of the pandemic, streaming media companies such as Netflix flourished because people were forced to stay at home during the lockdown. Many viewers turn to these streaming media platforms for entertainment.
inside The second quarter of 2020, Netflix added 26 million subscribers, compared with 12 million in 2019. It also reported revenue growth of 25% year-on-year to more than $1 billion.
Netflix is also in its early stages Development game service It can be launched next year.
As of 10:45 am Eastern Time on Thursday, Netflix’s stock price was $543.06, down $4.89, or 0.89%.
Photo: AFP/Olivier DOULIERY
