Investors clearly are expecting Netflix to benefit from the COVID-19 crisis, with millions of people under stay-at-home orders - and looking for a diversion.
Netflix is scheduled to report first quarter 2020 earnings next Tuesday, April 21, after market close. It previously forecast total paid net adds of 7.0 million worldwide. Many analysts expect Netflix to gain more than that.
Pivotal Research Group now expects Netflix to net 8.45 million new subscribers for Q1. In a note Wednesday, analyst Jeffrey Wlodarczak raised his price target on the stock from $425 to $490 per share. `We believe the unfortunate COVID-19 situation is cementing NFLX's global [direct-to-consumer] dominance partly driven by the incremental content spend that is enabled by their massive and growing subscriber base,` Wlodarczak wrote.
To be sure, Disney Plus also has cashed in on the global coronavirus lockdown, but many of the rest of the company's businesses have been significantly disrupted by the crisis. Disney's family-friendly streaming service surpassed 50 million paying customers worldwide, the company announced last week, buoyed by its recent launched in India and eight Western European countries.
Meanwhile, other `stay-at-home` stocks have also climbed in the past month: Amazon's shares closed at an all-time high Tuesday, and they set a new record Wednesday after inching up 1.1%.