Netflix shares are up on Tuesday after the video streaming network took in a couple of bullish analyst reports to start the New Year.
David Miller, Loop Capital Markets Analyst reaffirmed his positive rating on Netflix and labeled it his best idea of 2018, He also increased his price target for the stocks from 237 to 241. Macquarie Research analyst, Tim Nollen also expects Netflix to perform well this coming year and raised his price target from 200 to 220.
Netflix shares surged 4.8% to end the session at 2.1.07 on the stock market.
Consumers’ increasing lack of tolerance for advertising drives them to subscription services and Netflix is miles ahead of peers, Disney will eventually develop similar services but won’t be able to threaten Netflix, which holds onto a strong U.S. subscriber base that establishes passion brand status in many international market.
Netflix is also taking steps in order to improve the quality of its revenue and earnings to take its investor story over its subscriber growth.
Competition for viewer and original content is likely to remain stiff as Netflix goes up against Amazon, Walt Disney and others, Apple is also rumored to enter the subscription video-on-demand business this year.
Citi analyst Jim Suva and Asia Merchant all believe that there is a 40% chance that Apple will acquire Netflix. As Business Insider reported, Apple could use some of its $250 billion cash stockpile in order to Acquire Netflix.