Netflix share price bounced 17% higher
Following the news that Netflix has for the first time ever, passed the 200 million subscriber mark and had an impressive reserve of $8.2 billion in cash, Netflix’s share price bounced about 17% higher after it beat market expectation, powering the video streaming stock to close high after adding more customers than expected and revealed it no longer needs debt in building its entertainment empire.
As a result of this, the positive upbeat guidance on free cash has prompted optimistic remarks from Wall Street analysts, though some questioned how much of the subscriber growth was pulled forward.
This has equally triggered stock traders to increase their buying pressure on Netflix stock because of the surprisingly strong growth, as well as news that Netflix balance sheets are solid enough for Netflix considering share buybacks, as shares jumped 17% percent to $586.34 in recent trading.
Netflix’s business has been aided by COVID-19 pandemic, forcing people in spending more time indoors coupled with curbing other traditional entertainment options like movie theaters and concerts.
Netflix added 25.9 million customers in H1, 2020, and ended up adding 36.6 million customers in all, which is a record.
Netflix is an American streaming company that allows subscribers to watch movies, documentaries, different popular TV shows, and many more through internet-connected hardwires.
The Chief Global Market Strategist at Axi, Stephen Innes, in a statement, said: “Earnings reports also underpinned equity sentiment. Netflix rose 16% after noting its subscriber numbers increased by a record 37 million in 2020. Serenely, it seems lockdowns and TV go hand in hand.”
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