Netflix Stock Surges Ahead Of Busy Schedule Of New Content Releases

Internet television network Netflix (NFLX) expects subscriber additions to pick up this fall as it enters a busy period of premieres of new movies and TV series. Netflix stock surged on Tuesday.


Evercore ISI analyst Mark Mahaney on Monday reiterated his outperform rating on Netflix stock and raised his price target to 695 from 635.

In morning trading on the stock market today, Netflix stock jumped 3.3%, near 610.15. Earlier in the session, it notched a record high 613.04.

In a note to clients, Mahaney cited proprietary surveys in the U.S. and India for his increased confidence in Netflix stock. He also noted his analysis of what looks like a “very robust content slate” for the streaming video leader.

Fan Event Possible Catalyst For Netflix Stock

Netflix management blamed the company’s light content slate in the first half of the year as a reason why it missed Wall Street’s estimates for subscriber additions in the last two quarters.

Netflix’s content slate for the second half of the year is much improved, especially in the fourth quarter, Mahaney said.

Fresh content in September includes new seasons of hit shows “Money Heist” and “Lucifer,” and action movie “Kate.” Coming later this year are new episodes of “Cobra Kai,” “The Witcher” and “You.”

On Sept. 25, Netflix is holding an online fan event to preview upcoming shows. Over 70 films and series will be featured throughout the three-hour event. They include the highly anticipated next seasons of “Stranger Things” and “Bridgerton” and big-budget movies like “Red Notice” and “Don’t Look Up.”

The fan event, called Tudum, is named after the sound Netflix users hear when they press “Play.” The event could be the next catalyst for Netflix stock, BofA Securities analyst Nat Schindler said in a note to clients Tuesday. He rates Netflix stock as buy with a price target of 680.

Netflix Stock Returns To Buy Zone

“Netflix has a solid second-half 2021 content lineup that we think differentiates (it) vs. (the) competition,” Schindler said.

Also, Netflix will begin streaming all 180 episodes of the classic NBC sitcom “Seinfeld” on Oct. 1. Netflix stock jumped on the “Seinfeld” news last week.

On Sept. 2, Netflix stock crossed a buy point of 593.39 out of a 32-week consolidation period, but it ended the day below that point. It returned to the buy zone on Tuesday.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.


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