By Carly Forster
Netflix, Inc. (NASDAQ: NFLX) is an American internet subscription service of movies and television shows that, over the past few years, has grown into the world’s leading internet television network with over 48 million members in more than 40 countries. Customers pay a monthly fee to watch unlimited TV shows and movies available online without any commercial interruptions.
Despite the company’s week third quarter guidance, Netflix has been busy with continuous investments in exclusive and original content, such as Orange is the New Black and Bojack Horseman. With that being said, Netflix will likely reach its objective of domestic and international user base, as well as achieve higher profits during the upcoming quarters.
Netflix was also one of many websites that partook in the Net Neutrality Protest on Wednesday, September 10th against changes to “net neutrality” rules that would create a two-tiered internet. The premise of the protest was to display a spinning circular icon that represents slow loading to symbolize the slower download and streaming speeds that many websites allege are imminent if the proposals become law.
Shares of Netflix opened at $480.20 on Wednesday, September 10th . The company has a 1-year high of $489.29 and a 1-year low of $282.80. The stocks daily moving average is $480.89 and has a 50-day moving average of $453.50. The market cap for the Netflix is $29.11 billion and its P/E ratio is 182.03.
On September 10th, SunTrust analyst Robert Peck initiated a Neutral rating on Netflix with a $525 price target, noting “We believe NFLX to be the dominant internet streaming video service, offering consumers a robust yet highly curated selection of premium television and movie content. The company is at the forefront of the secular shift to premium streaming video and boasts a large installed customer base, strong brand, focused strategy, superior monetization model, and growing portfolio of differentiated original content. This has all culminated in outstanding financial and stock price performance.” He continued, “Our valuation analysis leads us to a $525 year-end 2015 price target, equating to ~10% upside but not enough to justify a Buy rating.” Peck has a 79% success rate in recommending stocks, helping him earn a +22.2% average return on all stocks he has rated.
Separately on September 10th, Canaccord Genuity analyst Gregory Miller initiated a Buy rating on Netflix with a $550 price target. He reasoned that Netflix will persist to continuously change the television viewing habits of consumers “for years to come.” Miller has a 69% success rate in recommending stocks, helping him earn a +6.0% average return on all stocks he has rated.
On average, the top analyst consensus for Netflix is Moderate Buy.