Why Netflix Stock Jumped Today
Shares of Netflix (NASDAQ: NFLX) have jumped today, up by 5% as of 1:30 p.m. EDT, after the dominant video streamer received two price-target bumps from Wall Street analysts. Meanwhile, peer Roku (NASDAQ: ROKU) said yesterday that it was seeing higher engagement on its streaming TV platform due to coronavirus-related lockdowns.
BofA Securities increased its price target on Netflix shares from $426 to $460 while reiterating a buy rating. Analyst Nat Schindler believes that the pandemic will create a surge in demand for video streaming. BofA thinks Netflix will post better-than-expected subscriber additions when it reports first-quarter results next week. Schindler is modeling for 8.4 million paid net additions, which would be ahead of the consensus estimate of 7.5 million. However, the strong likelihood of a recession on the horizon may mitigate some of those gains as the economic impacts of the coronavirus pandemic continue to materialize in the quarters ahead.
Image source: Netflix.
Source Fool.com
