The streaming media giant was on a roll last year but its safe to say that it has slowed down a bit as the stock price has declined significantly since the beginning of the year.
In two months’ time, Netflix stock has fallen by as much as 30% after hitting its all-time high earlier in December at $133.27. For the first time ever since the stock split in July, the stock of the streaming media giant was reported to be below the $90 mark. It is safe to say that this is a good opportunity for people to buy the stock of the streaming media as it has still been reporting growth in in its subscriber base.
On the other hand, one of the major brokerage firms stated that the stock of the video streaming media corporation could go up by as much as 40%. NFLX stock has been given a rating of ‘Overweight’ from an initial rating of ‘Neutral’ by the analysts at the research and financial services firm Piper Jaffray. The price target suggest by the stock experts of the research firm was $122.00 per share.
This rating was entirely based on the fact that the potential subscriber growth of the streaming media company is likely to rise in recent time. The analysts believe that by the end of 2020, which is four years away, the user base could reach to as much as 142 million online video on demand subscribers all across the globe. The breakdown of this number suggests that over 62.5 million users will be from the United States alone while the rest will be from all across the world.
On January 1, 2016, the user base of the media house had reached to 75 million; during the previous year the corporation added as many as 17 million throughout the year while for the current quarter it is expecting to add at least six million new subscribers.
However, the starting of the New Year had not been quite fair with the success of the business as the shares are down by 25.4% while the investors and shareholders of Netflix believe this to be a good sign. Despite the fact that it announced earlier in January that the service has been made available in over 130 countries simultaneously which brought it closer to its target of being in 200 countries by the end of 2016.
The strong international growth/ expansion as well as the growing user base did not stop the stock of the giant to slide. Netflix Inc. was the top performer of S&P 500 during the previous year. It is working on further growth for the current quarter of fiscal year 2016 and expecting to do even better than it did in the previous year.
Presently, the stock is being traded in the market for a share price of $83.32 indicating an increase of 0.64%. During the previous trading session the stock was seen hit a high point of $84.70 with a lower end of $79.95. However, the 52-week high of Netflix was reported to be $133.27 and the one year low was reported to be $58.46. The streaming media giant’s market capitalization is $32.92 billion with earnings per share of $0.28 and price to earnings ratio of $296.73.