Analysts Think Netflix Shares Could Go This High

wagnerap

Netflix broke the $500 milestone and analysts are predicting that the stock could move even higher.

Netflix broke the $500 milestone and analysts are predicting that the stock could move even higher, according to CNBC.

Netflix shares have surged throughout the coronavirus crisis. On Tuesday, Netflix hit a new all-time high and is up 33 percent over the past 3 months.

Ari Wald, head of technical analysis at Oppenheimer, believes this surge is only the beginning for the company. “It’s important to note that the stock is really just two months into a two-year breakout in trend as it has moved above its peak level from 2018. So we see runway for additional upside. Overall this is a breakout to stick with and buy more on pullbacks. We think Netflix is going higher,” Wald said on Monday.

“Strong trends are meant to break targets on the upside so whoever is highest on the street, I’d like to say put me $1 above them. In general, just looking at the breakout we’re about to push … upper $500-$600 sounds reasonable to me looking at the next 12 months,” said Wald. A $600 mark for Netflix stock signals 21 percent upside.

Danielle Shay, director of options at Simpler Trading, also believes Netflix could reach $600. “One major theme that I’ve seen as well is particularly surrounding earnings. We have an earnings report coming up in Netflix next week, and with a lot of these Covid names we have seen those tickers just continue to get bid as investors pile into them in anticipation of a positive earnings report due to coronavirus,” Shay said. 

Netflix will release earnings on July 16. Analysts expect earnings of $1.81 a share for the second quarter, which would be an increase of 60 cents from a year earlier, according to FactSet. “It could possibly hit the $550 in the next week and a half, which is a little bit lofty I know, but absolutely on the longer term I think it’s going to continue to $550 and upwards to $600,” said Shay. 

View the Full Story Here.

Comments

Economics, Finance and Investing

FEATURED
COMMUNITY