Netflix stock (NASDAQ:NFLX) has been trading sideways for over a year between a range of $460 and $580. But in mid August, the stock ran from $507 to $615.60, a new high. Are we set to see the stock make a further move up in price in the near term?

Covid crash

The March 2020 Covid-19 market crash saw the Netflix stock drop to a price of $288. After that low, the price ran nearly 100% to $575. Netflix bounced from the sell-off well, as did most stocks. But they really benefited throughout 2020. Many lockdowns worldwide saw a surge in demand for at-home entertainment. So the recovery for Netflix was a standout among most.

What next?

Prior to lockdowns and throughout, the company released many “Netflix Original” movies and series, which have done well. Coincided with cinemas being closed and big name releases being delayed, there was much more demand to watch these titles on demand. I think this is where Netflix will succeed going forward. I think many names in the film-making industry could sign deals which will be exclusive for premiers. Cinemas are not what they once were and have less appeal now. The easy-access at home viewing of Netflix will be the future for film releases. This is the catalyst I see behind a move for Netflix.

The company has earnings due on 19th October. I think the share price will continue to increase up until then. When they release, we could see some movements either way, depending on if they beat estimates or not. But going forward, I can see increased revenue as they pull in an even bigger audience as streaming services take up more of the market.

Competition

There are two main competitors for Netflix and they are household names. Amazon Prime and Disney Plus. Disney is the newest on the block out of the three but has seen an impressive move since the release of its “Plus” streaming service. It reached a high of $203, just under a 50% gain since that release. They have benefitted from big name hits such as Marvel and Star Wars. A similar route to exclusive deals with big names will see Netflix continue to benefit as well.

Netflix stock price

I think the first target for the Netflix stock price is to reclaim $600 and hold above. It has broken above this price before but did not stay above this milestone for long. A longer term target would be $700. I can see this being achieved next year, which makes it a good choice as an investment for your portfolio.

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