Netflix stock RISES despite global economic recession fears after suggestions people quarantined amid coronavirus concerns will use the streaming service to pass the time
- The price of Netflix stock rose .08 per cent this week as coronavirus concerns wiped nearly $3 trillion off the combined market value of S&P 500 companies
- Netflix could see a short-term benefit, since people who are quarantined, or workers staying home to avoid infection, will need to watch something
- Facebook, Amazon, Peloton and Slack also may see an uptick as people waiting out the outbreak rely on more heavily on the internet
- The outbreak already has mobile gamers busy in China, as the gaming industry there reports a spike in usage levels of the most popular games
Netflix stock actually got a bump this week as the rest of the world’s markets were taking a dive over coronavirus concerns.
The price of Netflix stock rose .08 per cent over the past five days, as analysts say they see the virus delivering a short-term benefit to streaming services.
Their reasoning is that people who are forced into quarantine, or workers who stay home to avoid infection, will need to watch something to pass the time.
The price of Netflix stock rose .08 per cent this week as markets took a plunge over coronavirus concerns
Analysts say that coronavirus concerns may benefit streaming services like Netflix, because people who are quarantined, or who stay home to work to avoid infection, will likely need something to watch to pass the time
‘Netflix is an obvious beneficiary if consumers stay home due to coronavirus (COVID-19 virus) concerns, and this has been reflected in considerable stock price outperformance this week,’ BMO Capital Market analyst Dan Salmon wrote in a research note, reports Variety.
The stock’s rise comes as Netflix unveiled a specially designed row of its top ten, most popular series in the US, which users can use to pick their programming, in addition to its overall ‘top ten list.’
Netflix features popular programs like, ‘Stranger Things 3,’ ‘The Witcher’ and ‘The Umbrella Academy.’
The popular Netflix show ‘Stranger Things’, now in its third season, may provide some viewing entertainment for people quarantined or staying home to work because of the coronavirus
The Witcher, starring Henry Cavill is among the more popular shows on Netflix, which could end up with more viewers from the coronavirus keeping more people at home waiting for the outbreak to run its course
‘The Crown’ was one of the most popular shows last year on Netflix, which is expected to have a short-term benefit from coronavirus concerns
Other companies that may see an uptick from people relying more heavily on the internet while they wait out the worst of the outbreak include Facebook, Amazon, Peloton and Slack, says MKM Partners analyst JC O’Hara.
‘We tried to identify what products/services/companies would potentially benefit in a world of quarantined individuals,’ O’Hara wrote in a note Thursday, per CNBC. ‘What would people do if stuck inside all day?’
The outbreak also has mobile gamers busy in China, as the gaming industry there reports a spike in usage levels of the most popular games.