While stock exchanges keep searching for safe ground, Netflix benefits from the global lockdown
During last month, its market price has grown almost in a half.
To some extent, we could compare Netflix to Gilead. There are two sectors which profit from the current lockdown measures. First of them is pharmaceutical industry, as many pharma companies work on drugs against COVID-19 disease and coronavirus vaccine. The second sector is television industry, offering at-home entertainment services to people during lockdown.
According to Netflix, the number of its new subscribers more than doubled from January to March, when the total number of paying customers grew to 15.8 million. The company had only around 10 million paying customers in the first quarter of 2019.
Such a progress has indeed reflected on Netflix financial results, when its first quarter earnings rose to $5.8 billion, that is $1.3 billion more than last year. Quarterly profit rose to $709 million from $344 in 2019. As investors are aware of the progress, they happily purchase Netflix shares. Only during last month, shares of Netflix were up $430, almost half more than the original value.