The release of a controversial film and weaker-than-expected growth projections for the third quarter have barely slowed Netflix’s growth this year. Though they took a small hit in the midst of September’s broader market correction, following Netflix’s historic result in late August, the Los Gatos, California-based company’s shares are again approaching highs. With the company poised to release earnings after today’s market close, here are five numbers that show just how much Netflix dominated entertainment in the pandemic era.
$ 235 billion
This is Netflix’s market cap the day before the third quarter earnings release. It increased by nearly $ 100 billion in 2020 alone, making the 23-year-old streaming giant one of the 20 largest companies on the S&P 500 by market cap, even ahead of media mainstays such as Walt Disney, Comcast and AT&T.
Netflix shares have risen more than 60% since the beginning of the year. For comparison, the S&P 500 was up only 6.5% in 2020. The company’s cofounder and billionaire CEO, Reed Hastings, made nearly $ 2 billion during the pandemic. The 60-year-old, who launched Netflix as a DVD subscription service in 1997 and owns about 1% of its shares, is now worth about $ 5.4 billion.
That’s the number of paid subscribers analysts expect Netflix to report on Tuesday, up 2.5 million quarter-to-quarter and in line with the company’s latest indications. The company said in July that it had added 26 million subscribers during the first half of the year (10 million in the first quarter and nearly 16 million in the second) while consumers forced home by the government-imposed quarantine obligation, far from movies and live shows to entertainment, they turned to the streaming giant. Such a forecast of increasing Netflix subscriber numbers could even prove cautious, investment research firm CFRA noted Monday, reiterating its buy rating on Netflix stock and adding that the company could be supported by an increase in subscribers from. international markets.
$ 6.4 billion
Analysts expect Netflix to raise nearly $ 6.4 billion in revenue in the third quarter, up more than 20% over the same period last year. The company also expected to report earnings of around $ 2.13 per share, down from $ 1.47 per share last year due to rising costs amid the pandemic.
This is Bank of America’s target price released Friday for Netflix, up nearly 17% from its previous target of $ 575 and represents Netflix’s highest target price on Wall Street. Despite short-term uncertainties about subscriber growth in the second half of the year and a much-criticized theatrical release, Bank of America said it continues to see the acceleration of Netflix subscriber growth during the first half of the year as a “Permanent benefit”. Netflix’s average target price according to 39 analysts covering the stock is around $ 527, with a price range of 1% of current prices.