Netflix still managed to jump by 46% despite expectations of a weak start this year

Netflix

Shares of popular American entertainment company Netflix rose as high as 46 percent for the month of January as it was strengthened by the growth of subscribers on 2017’s fourth half. However, a number of skeptics are expecting it to start the year on a low note this 2018.

Netflix announced that it added as much as 8.3 million new subscribers in last year’s Q4 and is well above its last guidance of 6.3 million subscribers. Rob Sanderson, an analyst from MKM Partners suggested that its growth in subscribers is way too far to peaking and a lot of investors are not giving value to the growth potential of Netflix.

Looking at Berkshire stock portfolio, the stocks of this popular streaming service edged higher by 23,000 percent since its IPO last 2002. Its stocks have greatly overwhelmed the market just recently, along with a return of 1,030 percent for the past five years. Its significant jump previously has prompted the value of its shares by as much as $100 billion for the very first time.

Today, the stocks of Netflix is continuously picking up steam after a very slow start as it surged faster than any other general market. Based on an independent research, the huge jump of Netflix on last year’s fourth quarter is already highly expected.

MarketWatch said that Sanderson thinks that several traders have been underestimating the story of Netflix whilst there is a particular non-bearish sentiment surrounding its shares. He added that streaming service has a lot of remaining years to have another boost in subscribers.

 

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