In hitting a new record high on Thursday, Netflix shares have doubled this year and cemented their position as the S&P 500’s second-best performer so far in 2018.
The content streaming company behind hit series such as The Crown, 13 Reasons Why and Stranger Things was up 2.5 per cent at $389.56 in late morning trade in New York. It had traded as much as 2.9 per cent higher to an intraday record of $391.13.
Thursday’s jump took its year-to-date gain to 103 per cent, making Netflix only the second company in the S&P 500 to have doubled so far in 2018. The other is Abiomed, which hit the milestone in mid-May.
Hard on Netflix’s heels is Twitter, with its shares at a three-year high and up more than 90 per cent so far in 2018.
At this time last year, Netflix’s shares were up 22.9 per cent, nearly half of the 55.1 per cent gain it posted for calendar 2017.
Netflix now has a market cap of $165.2bn, putting it just behind Citigroup, at $171.6bn and Merck, at $168.4bn. Its market cap recently surpassed that of Walt Disney, which weighs in at $158.1bn and is doubling down on its own streaming services in an effort to be a contender in the Netflix era.
Earlier this week, Goldman Sachs analysts reiterated their “buy” rating on the stock and said the company would be cash flow-positive by 2022. The bank lifted its 12-month target price by $100 to $490, which is the highest on the Street.
Netflix’s average target price is $335.91, according to a Bloomberg survey of 46 analysts, more than half of whom rate it a buy.
The company reported a forecast-busting set of results in its first quarter and flagged strong revenue growth driven by international subscribers.
There are 71 companies in the tech- and biomed-heavy Nasdaq Composite, besides Netflix and Abiomed, that are up by 100 per cent or more so far this year.
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