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Netflix shares surge 7 percent on subscriber gains

Reuters 

(Reuters) - Shares in Inc neared a record high on Tuesday after the reported a rise in subscriber additions for the fourth straight quarter.

The shares rose more than 7 percent in premarket trading as at least 12 brokerages raised their price targets for the stock. Analysts at were most bullish, upping their target to $385.

The company's shares, which have gained 60 percent this year to become the top performer on S&P 500, were last up 7.5 percent at $330.75. The stock reached a record high of $333.98 last month.

"Netflix's content strength and the global, secular shift to are driving subscriber upside," wrote in a note.

The company added 1.96 million subscribers in the and 5.46 million subscribers in its international markets in the second quarter, beating analysts' average expectations.

"We believe the breadth of Netflix's content offering is paying dramatic dividends in terms of subscriber adds and retention," wrote.

Netflix's plans to invest around $8 billion on content this year.

Analysts said the company was also benefiting from its wide range of agreements with and internet service providers, who are bundling streaming into their service offerings.

In the United States, T-Mobile, FiOS, USA's Cablevision, and offers subscriptions. has similar deals with in and SFR in

"While these offerings so far are most prevalent in mature markets, leading to a lower average selling price and also lower churn, partnerships could also become more important in emerging markets," said.

Out of the 46 analysts that cover Netflix's stock, 26 now rate it at "buy" or higher, 17 at "hold" and 3 at "sell" or lower. The median price target for the stock was $342.50.

(Reporting by and Jasmine I S in Bengaluru; editing by Patrick Graham)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Tue, April 17 2018. 20:21 IST
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