Analysts View Netflix Stock’s Highs Temporary, COVID-19-Dependent

Stock market analysts gave their latest viewpoints regarding the Netflix stock. They pointed to the coronavirus or COVID-19 pandemic as among the key factors driving the performance of the streaming giant’s stock market equity.


We are quite interested in reading this latest news regarding the Netflix stock and sharing it with our followers. As streaming enthusiasts, we think this company’s Wall Street performance is a must-follow as it could impact our contemporary entertainment habits, and so do those of our readers.


According to the Monday, January 24, 2022 report posted online by Indonesian news outlet The Jakarta Post, the Netflix stock has sunk as Wall Street investors reportedly flee so-called “stay-at-home” stocks. Shares of the video streaming service provider finished 21.8 percent lower last Friday, January 21.


Moreover, Netflix lost its grip of approximately US$40 billion in market capitalization after releasing results last Thursday evening, January 20, projecting growth of merely 2.5 million subscribers in the first quarter.


This number demonstrates the streaming behemoth’s slowest expansion since 2010. Additionally, it showed a huge downshift from the 55 million Netflix subscribers over the past two years as the COVID-19 pandemic transformed daily life.


This development involving the Netflix stock found the streaming service provider in Wall Street’s hot seat last Friday. Markets are reportedly reassessing the diminishing growth prospects of so-called “pandemic stocks.”


Furthermore, sell-offs consisting of the Netflix stock are a specifically brutal manifestation of a market dynamic that has been ongoing for months in stay-at-home equities, based on stock market analysts’ opinions.


The investment thesis of stay-at-home equities like the Netflix stock has reportedly worsened with the lessening risk of the COVID-19 pandemic-caused lockdowns. Gregori Volokhine said that the Netflix stock, as well as those of Etsy, Amazon, eBay, and PayPal, had all plummeted between 20 and 50 percent from their summits.


The Meeschaert Financial Services’ president linked this trend to more people going out and leaving their houses which he said had been going on for months. Many of these firms achieved valuations built on the notion that rapid growth witnessed during the COVID-19 pandemic would carry on.


Jeffrey Wlodarczak still broadly believes in Netflix’s prospects. Nevertheless, this analyst at Pivotal Research is anticipating moderating growth.


Wlodarczak remarked that Netflix is merely operating at a more sluggish speed, considering the huge pull-forward of demand enabled by COVID-19 pandemic shutdowns. He relayed that they are expecting the Netflix stock to work and for normalization in Netflix subscriber results over time.


As “stay-at-home” equity, we agree that the Netflix stock boomed during the COVID-19 pandemic. This global healthcare crisis has resulted in people getting confined to their homes as a safety measure versus the deadly coronavirus.


At this point, the streaming giant’s stock market shares may be falling. Nevertheless, since we are moving towards digitalization in most fields and aspects of life, we believe the Netflix stock will still thrive in the long haul.


After all, the COVID-19 pandemic is still ongoing, preventing people from congregating in cinemas to watch movies. The convenience of streaming or downloading content on one’s streaming device that Netflix offers is also more enticing, which cord-cutters have chosen in recent years instead of staying as cable subscribers.


With these scenarios, we think the Netflix stock can recover in the coming months as the streaming giant symbolizes modernized entertainment. We also think people are certainly not going back to conventional entertainment practices.

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