Netflix RISES stock despite fears of global economic downturn after suggestions that people quarantined amid coronavirus concerns will use the streaming service to pass the time
- Netflix’s share price rose 08 percent this week as coronavirus concerns wiped out nearly $ 3 trillion from the combined market value of the S&P 500 companies
- Netflix may see a short-term benefit, as people in quarantine or workers who stay home to avoid infection will have to look at something
- Facebook, Amazon, Peloton and Slack could also see an increase as people waiting for the epidemic rely more on the Internet
- The outbreak has already occupied mobile players in China as the gaming industry peaks in the usage levels of the most popular games
Netflix’s shares hit hard this week as the rest of the world markets were plunging on coronavirus concerns.
Netflix’s share price has risen by 0.08 percent in the past five days, as analysts say they see the virus offer a short-term advantage to streaming services.
Their reasoning is that people forced to quarantine or workers who stay home to avoid infection will have to watch something to pass the time.
Netflix’s share price rose 0.08% this week as markets suffered a drop in worries related to coronavirus
Analysts say that coronavirus-related concerns could be useful to streaming services such as Netflix, because people in quarantine or staying 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 because of worries about the coronavirus (COVID-19 virus), and this has reflected a significant outperformance of stock prices this week,” wrote BMO Capital Market analyst Dan Salmon in a research note, Variety reports.
The increase in the title comes when Netflix has unveiled a specially designed row of its top ten most popular series in the United States, which users can use to choose their programming, in addition to its “top ten list”.
Netflix offers popular programs such as “Stranger Things 3”, “The Witcher” and “The Umbrella Academy”.
The popular Netflix show ‘Stranger Things’, now in its third season, could offer entertainment for quarantined people or stay home to work because of the coronavirus
The Witcher, played by Henry Cavill, is among the most popular shows on Netflix, which could end up with more coronavirus viewers keeping more people at home waiting for the epidemic to run its course
‘The Crown’ was one of the most popular shows last year on Netflix, which is expected to benefit in the short term from coronavirus concerns
Other companies that could see an increase in people who rely more on the Internet while waiting for the worst of the epidemic include Facebook, Amazon, Peloton and Slack, says MKM Partners analyst JC O’Hara.
“We have tried to identify which products / services / companies could potentially benefit in a world of quarantined individuals,” O’Hara wrote in a statement Thursday, for CNBC. “What would people do if they got stuck in all day?”
The outbreak also has mobile players engaged in China as the gaming industry peaks in the usage levels of the most popular games.