Why Netflix Stock Jumped Today
Shares of Netflix (NASDAQ: NFLX) surged as much as 7.5% on Monday as analyst firm Canaccord Genuity sketched a rosy picture of the company's prospects in 2020. By 3:05 p.m. EDT today, the stock had cooled down slightly to a 7% gain.
Canaccord analyst Michael Graham raised his price target on Netflix from $415 to $450 per share, leaving a buy rating unchanged. Graham argued that the company will benefit from stay-at-home orders during the coronavirus crisis, boosting Canaccord's subscriber-addition estimates by 20% for the first quarter and 5% for the full fiscal year. The accelerated account growth, in turn, should lead to 0.5% higher revenue in the first quarter and a 1% revenue boost for the full year.
Netflix headquarters in Los Gatos, California. Image source: Netflix.
Source Fool.com
