Netflix, one of the leading technology and media services providers and production company prices, witnessed substantial gains to September 14 as it was up about 44.4%.
After a strong performance in prior months, Netflix’s share price slumped last week amid a broader tech sector setback. Rebounding quickly from and intraday low of $290.25 on March 17, Netflix’s share price has hit $420 in a month and has remained consistently more than $450 since the end of June, touching a peak of $575.37 on July 13.
This reduction reflected a volatile period for Netflix’s share price, which grew to $556.55 on September 1 before sinking to an intraday low of $485.98 on the morning of September 4. It underperformed the S&P 500 Index, which plunged 5%, the Dow Jones Industrial Average (decreased 3.4%), and streaming subscription rival Disney with a 3.1% drop over the same time.
Netflix’s share price dipped following the Labor Day weekend, closing at $507.02 on September 8. On September 14, it was down around 14.43%.
Undoubtedly, Netflix is one of the significant companies immune to the negative market impacts during the pandemic.
Netflix: “Sleep was one of the biggest competitors for us.”
As global lockdowns forced people to stay at home was gifted a vas audience with significantly more free time on its hands. Reed Harisson, Netflix’s co-CEO, previously noted that sleep was one of its biggest competitors during the pandemic.
In the quarter to July 2020, Netflix gained an extra 10.1 million subscribers globally; the gain increased by 273.7% compared to the second quarter of 2019. Revenue of the second quarter of 2020 was $6.15 billion
On August 31, Techcrunch noted that the company was extending a free service offering trialed in several markets to its global audience, to attract more subscribers. The announcement found out optimistic for investors, as stocks increased to the peaks on September 1. However, that was shattered by pessimism across U.S. markets on September 3, which began to a pullback in Netflix’s share price.
Analysts, however, remain optimistic in the short-term. Forecasters predict Netflix sales will rise to $6.4 billion for the third quarter, and earnings per share will increase to $2.11 during this period.
