Is an Investment in Netflix Stock Highly Profitable Right Now?

When it comes to choosing the best amongst the online streaming platforms, Netflix emerges as the winner in that case. Netflix when reported about its fourth quarter of 2020, the total count of its subscribers was 203.66 million around the world with the maximum percentage (36.3%) of subscribers coming from the United States and Canada. The coronavirus pandemic added huge fuel to the subscriber count of the company because the pandemic period made the public sit at their homes compulsorily and with online streaming as the best source of entertainment, Netflix gained millions of subscribers. Netflix outshines amongst its competitors and while Disney+ is also garnering fame, it currently stands at a subscriber count of over 95 million subscribers.

Netflix Inc. (NASDAQ: NFLX)

  • 52 Week Range:  $290.25 – $593.29
  • Average Volume:  4,724,076
  • Market Capital:  $227.179B
  • Forward Dividend and Yield:  N/A (N/A)

Recent Surge in Netflix Stock

On one side, there is bad news for the customers of Netflix, but then it has become good news for the investors of Netflix stock. It was rumored that Netflix would now crackdown on the sharing of passwords and the company confirmed that the news is true. The Netflix account is not only shared within the family but also outside among friends and further and this would now be verified. This news led to a 3.7% surge in its stock.

Expectations from Netflix Ahead

Netflix has the best content and the major shows which have reached worldwide acclaim. This makes the choice of Netflix more considerable over other platforms of its kind. Therefore, the growth of Netflix is inevitable. Wall Street estimated that the company would add 6.5 million subscribers in the final quarter of 2020 while Netflix reported the addition of 8.51 million subscribers. The company had reported sales of $6.64 billion (increased by 22% on a year-over-year basis) in the fourth quarter with earnings of $1.19 per share (dropped by 8% on a year-over-year basis).

Now for the first quarter of 2021, Netflix expects on having sales of $7.13 billion with earnings of $2.97 per share while according to the analysts, the sales would come out to be $7.02 billion and the earnings would come out to be $2.10 per share.

How Profitable would be an Investment in Netflix Stock Right Now?

Netflix is a company worth investing in. The company has grown well so far and there is a high probability that the progress will only enhance further. The subscriber count is increasing because of the amazing content that it offers its viewers. Moreover, many of the shows have won several awards and this adds to the profile of the company. The stock is highly-priced but the shareholders who can invest in its stock can unquestionably go for investment here. Even the post-pandemic scenario of the company seems bright and hence, an investment in Netflix stock would bring in some fine profits.

About Travis Garlick 1812 Articles
Been writing about and trading stocks since 2013. Manage a group of micro-cap investors on Facebook with over 15,000 members. Turned $8,500 into 185k the first year I started trading stocks and haven't looked back.