Netflix, Inc. (NFLX) Will Cross $400 Despite “Death Cross” Warnings

FAANG stocks are under pressure and Netflix, Inc. (NASDAQ:NFLX) is no exception. Netflix stock has lost almost a third of its value since July of this year. Investors are concerned about subscriber growth and Netflix’s ability to sustain is current business model, which is based on massive cash spending to produce original content.

But there are several analysts who are rejecting market fears regarding Netflix.

Buckingham Research Group’s Matthew Harrigan recently gave a “double upgrade” to the stock, and raised his price target to “Buy” from “Underperform.”. The analyst also increased his price target for Netflix stock to $406 from $349. Harrigan’s basic rationale behind the stock upgrade is the latest dip in Netflix price. He thinks that the current decline in Netflix, Inc. (NASDAQ:NFLX) share price represents an excellent buying opportunity.

The analyst thinks that Netflix, Inc. (NASDAQ:NFLX) is doing the right thing by investing heavily on new content production. The new content, the analyst believes, will bring in more subscribers on the platform in the future. This way, Netflix will be able to introduce price hikes to increase its revenue easily.

RBC Capital Markets lead internet analyst Mark Mahaney recently said that Netflix will rebound from its recent declines. Mahaney believes that Netflix stock could double in the next three years.

The analyst believes that Apple’s streaming service is giving a tough competition to Netflix for the time being but it won’t hurt the company as Netflix has “plenty of other offerings.”

Netflix, Inc. (NASDAQ:NFLX) also reported very strong third quarter results. The company reported EPS of 89 cents, versus the consensus estimate of 69 cents. The company added new 6.96 million subscriptions in the quarter. Domestically, Netflix added new 1.09 million subscribers vs 673,800 estimated as per FactSet. Streaming revenue in the period increased by a whopping 36%. However, international revenue in the quarter dropped by $90 million due to year-over-year impact from currency.

NFLX is an interesting investment but these MUST BUY Stocks are set to soar
Get this recently published report  Volatility Must Buy Stocks report absolutely free.

Also Read: Top Auto Stocks To Buy After Midterm Elections

Author does not have investment in stock discussed in this article.

Free books, reports and subscriptions...