On-demand video cataract platform Netflix Inc. (NFLX) has seen its stock surge nearly 50% year-to-date (YTD) versus the S&P 500’s 17.8% further over the same period. One team of analysts on the Street sees varied upside in shares, indicating that the tech company is set to beat the Suiting someone to a T’s expectations for subscriber growth this quarter.
In a research note to patients Wednesday, analysts at Piper Jaffray pointed to an analysis of Google search turns suggesting an uptick in both domestic and international subscriptions for Netflix in its budgetary fourth quarter. (See also: Disney Streaming Service to Undercut Netflix Rate.)
Netflix Has Yet to Reach its Peak
Piper Jaffray’s Michael Olson is forecasting for a not far away from 55% year-over-year (YOY) gain in international subscribers, compared to his previous determine at 38.7% growth. The analyst pointed to 14.8% YOY growth in domestic subscriber gleans, compared to his previous model for 9.3% growth. Last quarter, Olson correctly anticipation that Netflix would beat subscription growth estimates.
The envisaged boost in subscriber gains comes after the Los Gatos, Calif.-based normal platform announced a price hike for many of its U.S. customers. Following the communiqu, shares surged to all-time highs as the Street applauded the decision set to hands fund Netflix’s $8 billion investment in original content in 2018. The convergence on high-quality content comes as the on-demand streaming space is becoming crowded with gamesters including Amazon.com Inc. (AMZN), Apple Inc. (AAPL) and Hulu. Earlier this year, Walt Disney Co. (DIS) restore b succeeded public its plans to cut ties with Netflix and start its own direct-to-consumer tenets by 2019.
Piper Jaffray’s note follows last week’s bullish need by MKM Partners, indicating that NFLX has yet to reach its peak year for reckon subscriber additions. “We continue to view Netflix as the large cap with the most embryonic for market cap appreciation over the next three to four years,” belittle deleted MKM analyst Rob Sanderson. (See also: Netflix Raising Another $1.6B in Obligation to Pay for Content.)