Netflix shares hit an all-time high Friday, briefly passing through $0 for once ever, an incredible milestone for a video streaming company upending the traditional media industry.
The catalyst for the most recent surge was multiple top analysts on Wall Street raising their cost forecasts for the company This kind of week. yet This kind of year’s gains have been about the over-the-top leader growing subscribers at an incredible pace.
Goldman Sachs reaffirmed its buy rating Friday as well as raised its cost target for Netflix shares to $235, highest on Wall Street. of which predicted the company will post subscriber gains above expectations for the next two quarters.
“We believe consensus subscriber estimates for Netflix ahead of Monday’s earnings remain too low, particularly for the quarter, 4Q, as well as beyond,” analyst Heath Terry wrote in a note to clients.
JPMorgan also reiterated its overweight rating Friday as well as raised its cost target for Netflix shares to $225 coming from $210 Friday.
After jumping as much as 2.5 percent to $0.82, the stock pulled back slightly to $198.75 a share. The company is usually slated to report third quarter earnings on Monday.
Netflix hit quite a few impressive subscriber milestones This kind of year. In April, of which reached 100 million total subscribers just three years after surpassing 50 million. of which also revealed in July of which right now has more than 50 million subscribers inside the U.S. as well as international markets.
The company’s shares have outperformed the market as well as various other media names. Netflix stock is usually up more than 60 percent for the year through Friday morning compared with Disney shares’ decline of 7 percent, Time Warner’s 5 percent gain, CBS stock’s 11 percent drop as well as the S&P 500’s 14 percent return.
Netflix announced last week of which is usually raising prices for some of its subscription plans. Its $10 per month high-definition plan right now costs $11 per month. Netflix’s 4K streaming plan, which enables higher resolution video streaming, will cost $14 per month, up coming from $12 per month.
Bernstein reiterated its outperform rating on the company’s shares on Thursday, predicting Netflix will thrive coming from its recent cost increases without any big detrimental effects.
“Looking at the history of past Netflix cost increases, the impact on the pace of net sub additions has not been severe, as well as has been decidedly temporary — as well as we believe the Netflix service is usually even stronger as well as more entrenched right now,” analyst Todd Juenger wrote in a note to clients. “We believe This kind of cost increase, sooner than expected, shows Netflix management has reason to be confident in their sub trajectory as well as cost inelasticity.”
Netflix has raised prices for brand new subscribers at a 10 percent per year rate since 2014, the analyst noted, as well as still has been able to raise its U.S. subscriber base to more than 50 million coming from 34 million.