Market Overview

Here's Why Netflix Stock Could Outperform In The Coming Quarters

Here's Why Netflix Stock Could Outperform In The Coming Quarters
Related NFLX
Is Netflix's New $800 Million Offering Different From Its Past 3 Offerings?
Wall Street Journal's WSJD Live Conference Begins Today, Presenters Include News Corp, Netflix, And Microsoft
30 Trades To Profit From The Self-Driving Car (Seeking Alpha)

Although shares of video streaming giant Netflix, Inc. (NASDAQ: NFLX) have been lackluster this year, returning about -4.5 percent, there is little doubt that the company has created a lot of value and wealth for its shareholders.

In the last five years, shares are up more than 500 percent and a whopping 3,000 percent in the last 10 years. If analysts at RBC are to be believed, that bullish run is going to continue in the future.

Mark Mahaney of RBC Capital Markets was recently on CNBC to discuss why he is bullish on Netflix going forward.

Related Link: Netflix Vs. Comcast: Who Will Win The Net Neutrality War?

"Okay, so this is the 13th quarterly survey we've done on Netflix in the U.S. It has become the definitive number one destination for U.S. Internet users, when you ask them where do you want to go to online to watch TV shows and movies. It’s even ahead of the ubiquitous YouTube and we're seeing the number two and number three competitors in there, Hulu and Amazon, starting to flat-line or even decline in terms of usage," Mahaney said.

"When we look at the Netflix subscribers themselves, just in the U.S., we see rising levels of customer satisfaction, declining interest in turning off the service. So, Netflix in the U.S. looks like its strong and getting incrementally a little stronger. In the Europe, it's still very early stages and we have only found about 5 percent penetration of broadband households for Netflix in France and Germany. We're going to have to keep testing this, if that rises to 10 percent over the next year, that's the real bullish indicator, but we think they have got a universal good in their hands," Mahaney said.

"We like Netflix as a stock and as a company."

Latest Ratings for NFLX

Oct 2016NomuraMaintainsBuy
Oct 2016SunTrust Robinson HumphreyMaintainsHold
Oct 2016Credit SuisseMaintainsNeutral

View More Analyst Ratings for NFLX
View the Latest Analyst Ratings

Posted-In: Mark Mahaney RBC Capital MarketsAnalyst Color CNBC Long Ideas Analyst Ratings Media Trading Ideas Best of Benzinga


Related Articles (NFLX)

View Comments and Join the Discussion!