Netflix Stock Price Soars As More People Stay Home
While the global stock market tumbles, Netflix has hit a 52-week high as more people stay home and use the service.
As the COVID-19 pandemic forces people to stay home around the world, the global stock market has taken a tumble--but one company is doing very well. According to The Wrap, Netflix stocks hit a 52-week high on Monday April 13, rising 7% to nearly $397 a share--20% higher than it was at the beginning of the year.
While this isn't quite an all-time high for the company, which hit a $411.09 share price in summer 2018, it's still a strong result at a time when most companies are struggling--but there's a good reason for that, as the pandemic has driven so many people to stay indoors.
The Wrap quotes analyst Michael Pachter, who believes that "the market is correctly pricing in that stay-at-home orders mean greater consumption of in-home entertainment." The fact that people have more time to spend on services like Netflix has naturally led to a higher stock value.
The huge popularity of Tiger King (which was big enough to warrant a follow-up episode) has also been credited for the huge stock price increase. People are also less likely to cancel their subscriptions at the moment, according to the report.
However, Pachter also notes that the COVID-19 pandemic means that Netflix is "not producing any content" at the moment, which could, eventually, lead to a downturn--although Netflix has said that it has plenty of stuff on the horizon. It's also worth noting that Netflix stock was much lower in March, selling for $298.84 at its lowest.