Chill? Netflix stock up even as market plunges

Netflix investors are shrugging off the drama in the broader market as well as the consolidation in the media world...

Posted: Jun 20, 2018 1:32 PM
Updated: Jun 20, 2018 1:32 PM

Netflix investors are shrugging off the drama in the broader market as well as the consolidation in the media world

Stocks around the world are falling because of trade war fears. And the media landscape is in the midst of a massive shift after CNN's new parent company AT&T bought Time Warner and a bidding war for Fox could soon erupt between Disney and Comcast.

Yet shares of Netflix actually rose 3% Tuesday to just above $400 a share, hitting an all-time high in the process.

Netflix is now worth $175 billion, more than Disney and Comcast. The company is inching closer to Verizon's market value of $200 billion as well.

Why are investors still infatuated with Netflix?

Under CEO Reed Hastings, the company has already launched one hit show after another -- "Stranger Things," "The Crown," "Unbreakable Kimmy Schmidt," "Orange is the New Black" among many others.

And Netflix is using its financial muscle to strike more programming deals around the world. The company announced a new exclusive deal Tuesday with the creators of "Dark" - a hit German language show.

The company is also making it easier for people to watch their favorite shows on the go. Netflix announced a deal this week with Dish Network that will allow people to stream Netflix shows in hotel rooms that have TVs using Dish's Evolve service.

Netflix has also continued to post impressive gains in subscribers despite competition from Amazon and big media-backed Hulu -- which is owned by Disney, Fox, Comcast's NBCUniversal and now AT&T too by virtue of the Time Warner deal.

Related: Which media companies are still up for grabs?

Netflix will report its second quarter results on July 16. Analysts are predicting that sales will increase more than 40% from a year ago and that profits will more than double.

They also are forecasting a 5 million jump in global subscribers, which would bring Netflix's total subscriber count to more than 130 million.

That's led analysts to keep pushing their price targets for Netflix higher and higher. Three of them did so on Tuesday.

GBH Insights slapped a $500 target on Netflix shares. That's more than 25% above the current price and the highest on Wall Street. Piper Jaffray boosted its target to a more modest $420 a share while Monness, Crespi, Hardt raised its outlook to $460.

So it's no wonder Netflix continues to be a favorite of investors, despite worries facing the broader market and the media sector.

Maybe President Claire Underwood will launch a trade war on the sixth and final season of "House of Cards." Or the Department of Justice could sue to block a flurry of big media mergers. Ripped from the headlines indeed.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 159036

Reported Deaths: 3879
CountyCasesDeaths
DeSoto10563104
Hinds10414204
Harrison7397113
Jackson6655128
Rankin6057107
Lee540396
Madison5120107
Forrest394786
Jones376188
Lauderdale3663147
Lafayette341053
Washington3321108
Lamar301950
Oktibbeha255262
Lowndes252867
Bolivar248084
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Neshoba2280122
Marshall225051
Leflore211191
Monroe209778
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Lincoln200566
Sunflower194155
Warren183058
Tate180451
Union172926
Copiah170840
Pike166760
Scott161330
Yazoo161340
Itawamba159936
Alcorn159328
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Simpson154053
Adams147252
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Leake141844
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Marion121447
Tishomingo114043
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Newton110529
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Clay96127
Clarke94853
Jasper87023
Stone82015
Calhoun79513
Walthall79330
Montgomery78426
Carroll75515
Lawrence74614
Smith74216
Yalobusha74228
Noxubee73317
Perry68726
Tunica63019
Greene62422
Jefferson Davis59617
Claiborne59216
Amite57615
Humphreys55219
Quitman5107
Benton50418
Kemper48018
Webster47714
Wilkinson40722
Jefferson38312
Choctaw3637
Franklin3635
Sharkey32917
Issaquena1214
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Alabama Coronavirus Cases

Cases: 256828

Reported Deaths: 3711
CountyCasesDeaths
Jefferson34214511
Mobile20299366
Madison13925150
Tuscaloosa13591156
Montgomery12659238
Shelby1095877
Baldwin9163137
Lee792566
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Jackson350723
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Franklin259734
Coffee254115
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Chilton230841
Russell22813
Covington227934
Escambia206131
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Chambers185950
Pike162214
Clarke161819
Marion146136
Winston141924
Lawrence135336
Pickens127720
Geneva12638
Marengo125224
Bibb123938
Barbour120629
Butler118842
Randolph105922
Cherokee105524
Hale99732
Fayette96316
Clay93525
Washington93319
Henry8946
Monroe83811
Lowndes82129
Cleburne79914
Macon76522
Crenshaw72930
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Perry6927
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Sumter58922
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