Shares of Netflix Over $600

In what might be considered one of the biggest milestones ever, Netflix just saw shares rise to over $600, which is the first time that has ever happened for the streaming service. Netflix shares went up to past $500 in April, and Wall Street is hoping that Netflix can break through the difficult to crack Chinese Market.

netflix

Netflix shares ended up increasing 5 percent on Friday, making shares bounce to $614, and just in 2015 shares have gone up 77 percent. The price and the percentage of increase makes Netflix the best performer in the S&P 500 and the Nasdaq 100, with over a 29 percent lead on the next competitor. Netflix seems to have gotten back on track after a rough 2014, with new television shows and more movies this year, people are once again excited about the streaming service.

Even more important, if Netflix can break into the Chinese Market, then it will cement the legacy of the company as the leader in online streaming services. Chinese is quickly growing in terms of interest in online video streaming, and Netflix is actually in talks to partner with a Chinese company that is backed by the Alibaba founder Jack Ma. There has not been any announced deals with that company, although it appears one might be in the works very soon. China has always been a tough market to get into, but Netflix might be just the company to make it happen, especially since globally people are yearning for binge-streaming television.

Right now, Netflix is valued at $37 billion, which means it is a lot larger than the traditional media companies such as CBS and Viacom, and it’s almost half the size of 21st Century Fox. There are a lot of skeptics out there though, who believe Netflix is too pricey and overrated. Netflix is right now trading at 426 times the company’s projected earnings this year, and only Amazon has a bigger price-to-earnings ratio. Netflix is doing a lot of spending in terms of trying to increase subscriber growth, so this is something investors need to be careful of, because it could come back to haunt them later down the road. For now though, everyone is enjoying seeing Netflix riding high, hoping that the next stop will be to $900 a share, although that will likely not last long even if it does happen.





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Jeanne Rose
Jeanne Rose lives in Cincinnati, Ohio, and has been a freelance writer since 2010. She took Allied Health in vocational school where she earned her CNA/PCA, and worked in a hospital for 3 years. Jeanne enjoys writing about science, health, politics, business, and other topics as well.

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