Netflix is a streaming service that offers a wide variety of award-winning TV shows, movies, anime, documentaries, and more on thousands of internet-connected devices. You can watch as much as you want, whenever you want without a single commercial – all for one low monthly price.
It won’t come as a surprise to anyone who’s been hunkering down at home that Netflix is having a knockout year.
While movie theaters are quickly running out of cash, Netflix is thriving. The streaming service added 26 million subscribers in the first half of the year as the cultural conversation centered on shows like “Tiger King.”
In the second quarter of 2020, Netflix generated total revenue of over 6.14 billion U.S. dollars, up from just over 4.9 billion in the corresponding quarter of 2019. The company’s annual revenue in 2019 amounted to 20.15 billion U.S. dollars, continuing the impressive year-on-year growth Netflix has enjoyed over the last decade.
Last quarter, Netflix made more than doubled its profit compared to the same period a year earlier.
Investors will tune in Tuesday to see if Netflix can maintain momentum when it reports results for the July to September quarter. The company said in July that it expected to bring about 2.5 million subscribers during that period.
Bank of America analysts thinks subscriber numbers could be weaker this quarter given increased competition from players like Disney+ and NBC’s Peacock, the return of live sports and a predicted increase in people cancelling subscriptions.
Even so it raised its target for the stock to $670, a 26% rise over Friday’s closing price, due to faith in the company’s long-term strategy. Many have attributed NETFLIX’s huge gain in 2020 to the emergence of COVID-19 which kept most people in-doors leading to more streaming online.
As sporting activities across the world are resuming for business, can NETFLIX keep it up with the gains?