The online entertainment industry soared high during the Corona Virus Pandemic. While this pandemic brought losses for many major firms, Netflix has made huge profits. With people binging web series and movies during their time at home, the online entertainment industry gained a lot. This is a reason that Netflix stocks are suitable for investing.
Current Situational Analysis of the Netflix stocks (NASDAQ: NFLX)
This Monday, the stocks went down by 0.01%, yet the market performance turned out to be very well. In comparison to some of the major competitors such as Amazon (NASDAQ: AMZN), Comcast Corporation (NASDAQ: CMCSA), and Walt Disney (NYSE: DIS). The outperformance of a stock on a day despite having a loss makes it an even more suitable choice to buy.
Statistical Summary of Netflix Stocks
- 52 Week Range: 265.80 – 575.37
- Average Volume: 6,026,687
- Market Capital: $231.639B
The market capital of this company is a hefty amount and has increased wholesomely by $100 billion in the year 2020 alone. This has made it surpass the older and main companies like Disney and Comcast Corporation. The stocks have risen by more than 60% this year. This year has overall been a year of huge profit for Netflix.
Coming to the number of paid subscribers this company has, it has a total of 195 million subscribers. This number is way greater than the paid subscribers of Amazon Prime and Disney Plus with 150 million subscribers and 60.5 million subscribers respectively. Netflix has emerged as a wonderful success when it comes to the online entertainment industry.
Should you buy Netflix stocks now?
Although Netflix is performing extremely well in the stock market, with soaring gains and side by side giving a tough race to all its competitors, still analysts remain speculative about its post-covid scenario. Nevertheless, any of the factors do not make it a stock that will not fetch profits. The content of Netflix serves as a major source of attracting subscribers. With shows like Stranger Things, Money Heist, etc becoming massive hits around the world, Netflix has profited quite a lot. Also, Netflix has removed the one-month free trial option for its new subscribers in the United States. A company that is well settled and has made a name in the market can only do this.
The analysis also figures out the possibility that Netflix stock might double. This however is only possible if the stocks rise by 22% by the end of this year. This is seemingly possible after five long years. All these studies are subject to the volatility of the stock market.
The post-covid situation will also be a competitive one since all the firms that went low during this time might implement various strategies to grasp hold in the stock market for themselves. The future looks bright for Netflix and hence is a favorable choice for investors looking forward to putting in their money in the right stock.