America: Netflix and chill? Maybe just Netflix
Netflix is a hugely popular service. How popular? New research suggests that, for at least some consumers in its home territory of the US, Netflix might be better than sex! 500 Americans between 18 and 54 years old, slightly more than half (56%) of whom were female, were recently surveyed about their relationship with the streaming video on demand (SVOD) market leader… and the results really shine a light on how attached audiences have become to their favourite content provider.
Netflix’s share price has been on an incredible journey so far this year – up nearly 40%!
Source: Yahoo Finance
When asked the headline question, as many as 30% of the respondents (that’s an unbelievable 150 people!) said they would rather give up sex than Netflix. 10% of respondents said they had dated someone solely so they could use their Netflix account, and 8% said they would break up with someone who secretly watched the finale of a series they had been watching together.
That’s a lot of love. But Netflix is also experiencing love from rather more serious sources: analysts. Since a December low-point, Netflix has rallied by 55%, making it the best performing FAANG (Facebook, Amazon, Apple, Netflix and Google) stock over the period.
William Blair analyst Ralph Schackart recently told clients the stock had another 22% rally in it by year-end; Miller Tabak’s Matt Maley said Netflix is in an “uptrend” and noted: “Overall it looks quite good. If you look at its weekly and intermediate chart when it sold off, it bounced off its 100-week moving average. That line provided great support for the stock for four or five times in the last six years, so that’s very positive.”
With audiences, analysts, and investors united over their love for Netflix, the company’s position at the head of the SVOD pack looks as safe as ever.
Dominion holds Netflix in its Global Trends Ecommerce Fund.
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