Netflix (NASDAQ:NFLX) hit a record high after Jefferies gave three reasons to buy the stock.
In the firm’s pro column, analysts said the potential for double-digit subscriber growth, improving margins and the ability to evolve to a changing environment would lift the stock even higher.
More gains for Netflix would add to a 35% rally this year.
Subscriber growth is key to Netflix’s success, says Michael Bapis, managing director of Vios Advisors at Rockefeller Capital Management.
“Demand is off the charts right now, and it’s the integral driver for Netflix. You’re going to have subscriber growth continue to grow. It’s a massive market and people aren’t going to go to the movies.”
Netflix said it added 15.8 million global subscribers in the first quarter and expects to add 7.5 million in its second quarter.
Netflix’s steady supply of new content and customer demand should support further growth for the company and stock price, adds Bapis.
Latest developments on the programming front have Iron Man actor Robert Downey Jr. taking the leap from Marvel to DC Comics, but as a producer this time.
Downey just got the final thumbs-up from Netflix to produce an eight-episode season of graphic novel series Sweet Tooth, written for DC’s adult-oriented publishing label, Vertigo.
Sweet Tooth is a graphic novel created by award-winning cartoonist Jeff Lemire. In a world where some people are human-animal hybrids, a boy with deer features goes through a classic coming-of-age saga in a bleak and violent environment. This cartoon wasn’t written for the kids.
NFLX began Friday up 24 cents to $442.19