Netflix Stock Price Thriving Despite COVID-19 Outbreak
The coronavirus pandemic has caused a considerable decline in the stock market for many big companies. The ongoing health crisis is currently causing a huge financial loss, and apparently, worst is yet to arrive. But, even in these hard times and work from home conditions, Netflix is one of the enterprises which is doing pretty well in the stock exchange. While many companies have turned on their survival mode to save their stock price from declining, Netflix stock price is thriving and has achieved record-breaking heights.
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Netflix Stock Price Fluctuation
Netflix’s share price has observed an enormous increase during this lockdown period. During the past month, there had been around a 30% increase in the stock price of Netflix. The isolated audience has a big role in giving this huge bump to Netflix corporation. The record high price of Netflix share is lying around $435, which is $115 more than its share price on 17th March (approx. $320).
Netflix’s CEO – Reed Hastings Net Worth
The chief executive officer of Netflix, Reed Hastings, is also the co-founder of this corporation. Just like Netflix, Hastings is also gaining during this outbreak as his net worth has seen over $1 billion increase since March 2020. Reed Hastings net worth is whooping around $4.9 billion, and he is currently holding on 1.3% shares of Netflix. Hastings is also on the board of directors of Facebook since June 2011.
New Shows & Subscriptions
The Spanish hit, Le casa de papel, also known as Money Heist, premiered its 4th season on 3rd April, which consisted of 8 episodes. This Netflix series has gained much popularity for its first three seasons, and these days too, it has become the talk of the town due to its recent fourth season release. Despite the criticism it is facing, it has played a great role in giving rise to the new subscriptions of Netflix. The viewers cannot hold themselves up for watching “Tiger King,” a documentary based on true-crime. The stats show that this documentary has crossed over 34 million views in the first ten days of its release.
The global viewership of Netflix is beyond 300 million subscriptions, out of which, around 60 million paid subscribers are from U.S. Netflix has seen a modest increase in the number of new subscribers in this lockdown time, i.e., around 45%.
Greater Revenue, Fewer Outflow
Due to this crisis, another benefit for Netflix is the production has stopped. The paid subscriptions of Netflix are increasing, which is helping them enjoy greater revenue. Whereas, on the other hand, halted production has reduced the costs and cash outflow for the company that is also a primary reason behind its thriving stock price.
The market value of Netflix has increased by around $50 billion since the start of 2020. The current Netflix net worth is splurging around $194 billion, and its archrival, Disney, has faced a downfall in its worth as it has been affected hard due to coronavirus. Netflix and Disney are prominent figures in the entertainment industry, but Netflix has clearly outshined Disney due to the difference in tactics.
Netflix Stock Price – Is the Downfall Arriving?
Currently, Netflix has enough content in its pocket that can feed and amuse its viewers during this outbreak and even after that. Some of the future plans for Netflix original series might suffer a delay that ought to release in the fall of 2020. However, Netflix will not be running out of the new content, and even due to lower supply, it would be in a much better position as compared to its competitors when this COVID-19 pandemic comes to an end.
