However, this was a one-time benefit, as the lifting of lockdowns led to a drop in subscriber growth. Q2 revenue touched $6.1 billion, a quarterly high for Netflix. To put things in perspective, Netflix added 28 million subscribers in all of 2019. The streaming giant added 16 million subscribers in Q1 and another 10 million in Q2, taking the total addition to 26 million in the first six months of 2020.
The global spread of coronavirus led to lockdown in various cities across the globe which led to higher demand for streaming services.
However, this trend was reversed with the multiple rising in 2020 and currently standing above 115x, mainly due to rising streaming demand on account of the coronavirus crisis as people are spending more time watching content, thus giving a boost to demand for home entertainment options. Higher earnings were somewhat offset by a drop in the P/E multiple, which more than halved from 150x in 2017 to 75x at the end of 2019, as the stock price growth was lower than the increase in EPS as Netflix started losing US streaming subscribers in 2019. Our dashboard Buy Or Sell Netflix Stock has the underlying numbers. Thus, the stock will see a marginal growth of 4%-5% in the near term. However, the stock is unlikely to see a sharp rise (as was seen over recent months) as the lifting of lockdowns is leading to a sharp drop in subscriber growth. Despite the stock being more than 50% above its December 2020 level, expectations of continued growth in streaming demand and improving earnings is expected to drive the price higher. But streaming as a business is projected to register continued growth in the next few years. NFLX stock dropped 11% in the last one month after the company missed all targets in its Q3 results. The stock outperformed the broader market over recent months due to increased demand for streaming services on account of home confinement of people during the ongoing pandemic. Netflix stock rallied from $299 to $491 off its recent bottom, compared to the S&P 500 which increased by 60% from its recent bottom. Fallon/Bloomberg © 2020 Bloomberg Finance LPĭespite a 64% rise since its March lows of this year, at the current price near $490 per share, we believe Netflix stock (NASDAQ: NFLX) still has some upside left. Netflix Inc. raised prices for its most-popular plan for the second time in two years, betting subscribers are willing to pay more for a huge library of shows and movies as the pandemic rages on. In July of that year, with its stock price at 686. By 2015, Netflix stock price topped 700 a share for the first time. corporate office in Los Angeles, California, U.S., on Friday, Oct. Netflix stock price has not fallen lower than it did near the end of 2012.
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