Netflix shares set to climb past $500 due to pandemic
Online streaming giant Netflix's share price is set to rise past $500 as people are forced are to stay indoors and consume entertainment on account of the coronavirus pandemic.
Nasdaq 100
17,037.65
12:15 19/04/24
Netflix Inc.
$555.04
13:04 19/04/24
Netflix shares had already run up by 36% in 2020, having added another 5% in just over a week.
According CNBC, Ari Wald, head of technical analysis at Oppenheimer, said Netflix’s was more proof of the power of growth stocks.
“For us, it’s really a recommendation for buying growth broadly, which includes technology and health care as well. For us, growth has been market leadership, and we think likely to remain so amid what we see as a low and slow economic recovery given its resiliency to oscillating interest rates and commodity prices,” Wald said on CNBC’s “Trading Nation” on Monday.
“It’s also important to mention that just a month ago, Netflix was flat for the last two years, so this is a breakout that we think is just getting started, you know. For Netflix, you’ve got support at $400 and upside north of $500,” said Wald.
Netflix’s record high set in April stood at $449.
The online video entertainment giant added 15.8m global subscribers in the its first quarter. It expects to add 7.5m in its second quarter.