Well, well, well, it seems like broke folks are staying home more often, and you know what that means? More Netflix and chill!
The pandemic has turned movie-streaming into the ultimate form of entertainment, and even big players like Disney and Paramount are cutting back on their streaming services because they can’t keep up with Netflix’s lead.
If the economy goes into a recession later this year, people will probably stop going out altogether, which means streaming services will be more popular than ever.
Matthew Maley, the chief market strategist at Miller Tabak, said that streaming viewership “should pick up nicely.”
And guess what? Netflix will benefit even more because their competitors are too busy trying to make a profit to keep up with them.
Wall Street analysts are starting to catch on to this trend and are upgrading Netflix’s stock left and right.
UBS Group AG analyst John Hodulik upgraded the stock to buy last month, saying that the shift in priorities of Netflix’s rivals will drive subscription and pricing power in the coming years and “keep a lid on content costs.”
Even though streaming services are usually the first thing people cut back on during tough times, more than half of the analysts tracked by Bloomberg have a buy or equivalent rating for Netflix.
The stock has been struggling a bit this year, partly because Netflix is cracking down on password-sharing in some regions.
But with all the positive buzz around the company, it could definitely use a boost. Maybe it’s time to binge-watch some shows and give Netflix’s stock a little love.
Source: The Herald
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