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Biotech Stocks Get a Boost

6 years 2 months ago
In this episode of Market Foolery, Chris Hill chats with Motley Fool analyst Bill Barker about the latest news from Wall Street. They discuss the cash infusion from the U.S. government for potential vaccine development and a new acquisition in the entertainment space. Finally, t
The Motley Fool

XLC, GOOGL, GOOG, NFLX: ETF Inflow Alert

6 years 2 months ago
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Communication Services Select Sector SPDR— Fund (Symbol: XLC) where we have detected an approximate $136.0 million dollar inflow -- that's a
BNK Invest

Bernstein Says the Spotify-Netflix Analogy Is Wrong

6 years 2 months ago
It's tempting to compare Spotify's (NYSE: SPOT) recent push into original podcast content to Netflix's (NASDAQ: NFLX) wildly successful expansion into original video content. The Swedish music streaming leader has even directly encouraged such comparisons. Former CFO Barry McCar
The Motley Fool

Why Roku Stock Slipped 13% in the First Half of 2020

6 years 2 months ago
What happened Shares of Roku (NASDAQ: ROKU) dipped 13% across the first six months of the year, according to data from S&P Global Market Intelligence. After skyrocketing 330% in 2019, the streaming video stock was priced for perfection, and the company's valuation dipped eve
The Motley Fool

Trade Your (Insert Indulgence Here) for a Better Retirement

6 years 2 months ago
At this point, you're probably tired of the constant diatribes against your daily latte. It seems like every personal investing article out there outlines how much the average American spends on coffee each day, month, and year, and how much that money could become in 30 years i
The Motley Fool

Here's What to Look for When Netflix Reports Earnings

6 years 2 months ago
Netflix (NASDAQ: NFLX) is slated to report its second-quarter results on July 16. While many companies decided not to give forecasts for the next quarter, Netflix decided to give it a shot. However, the company did warn that its predictions could miss wildly given the increased
The Motley Fool

Netflix’s Original Content Library Separates It From the Pack, Says Top Analyst

6 years 2 months ago

In contrast to the havoc wreaked by the coronavirus on many parts of the economy, Wall Street will be keen to gauge the extent of its positive impact on Netflix (NFLX) when the streaming giant reports 2Q earnings next Thursday.

No doubt, Netflix has been one of the companies to benefit the most from the pandemic. The stay at home measures, according to market research firm Nielsen, resulted in streaming figures more than doubling during the pandemic’s peak in comparison to the same period last year. Accordingly, Netflix’ market performance has reflected the real-world activity, with shares up by 52% year-to-date.

After Q1’s record breaking subscription numbers, Canaccord analyst Maria Ripps expects Netflix to post another strong report. Along with the secular tailwinds blowing at its back, the 5-star analyst points out the simple reason why she thinks Netflix will keep on outperforming.

“Analysis of our proprietary Netflix content power rankings highlights continued momentum in original content: As subscribers around the world spent more time at home during Q2 due to the pandemic, and amid continued competitive intensity, the importance of Netflix's content slate has arguably gone up. It seemingly delivered, creating a consistent stream of interest and buzz around original titles,” Maria wrote.

You can count the roaring success of Tiger King, crime drama Ozark, dating reality series Too Hot to Handle, and Michael Jordan docuseries the Last Dance among the titles which have kept sofa bound consumers tuned into Netflix. Add to that children content which got a meaningful boost during schools’ closures and a sizeable library of reality TV shows and docuseries, “with the two genres representing over 20% of the top 10 most popular TV series during Q2,” and you get Ripps’ point.

And while others have pointed out the disruption to production schedules wrought by the pandemic will have an impact further down the line, Ripps puts a positive spin on this, too. As Netflix has ownership on one of the biggest content libraries among streaming services, it has an advantage over competitors. Moreover, with various projects in post-production, content hungry users should remain well-fed for the foreseeable future.

Ripps, accordingly, reiterates a Buy on Netflix shares along with a $550 price target. What’s in it for investors? Potential upside of 11.5%. (To watch Ripps’ track record, click here)

All in all, Netflix has a Moderate Buy consensus rating based on 22 Buy ratings, 9 Holds and 4 Sells. However, some analysts feel Netflix has soared enough for now, as the average price target is $470.87, and implies shares will decline 4% from current levels. (See Netflix stock analysis on TipRanks)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

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