Why Coronavirus Doesn't Change the Long-Term Thesis for Netflix Stock
Netflix (NASDAQ: NFLX) has become one of the few stocks to benefit from the COVID-19 crisis. As tens of millions join the ranks of the unemployed, consumers have turned to Netflix as a lockdown leaves people with more time to spend on the streaming video service.
This surge in business has taken this growth stock significantly higher. Moreover, as society opens, and the world slowly returns to work, the trends that drove Netflix higher over the last few weeks could easily reverse themselves. At that point, the previous problems that hurt Netflix stock before COVID-19 will likely return to the forefront.
On the surface, Netflix looks like it is firing on all cylinders. For the first quarter, the company reported profits of $1.57 per share. While that might have missed estimates, it came in more than double $0.76 per share reported in the same quarter last year. Moreover, the $5.768 billion in revenue is a 27.7% increase from the year-ago figure of $4.521 billion.
Source Fool.com
