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

Although shares of the video streaming giant Netflix, Inc. NFLX have been lacklusture this year, returning a dismal -4.29%, but there is no doubt that the company has created a lot of value and wealth for its shareholders. In the last 5 years the stock of Netflix is up by over 500% and a whopping 3000% in the last ten 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.

“Okay, so this is the 13^th quarterly survey we have done on Netflix in the US. It has become the definitive number one destination for US 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 are 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 US, we see rising levels of customer satisfaction, declining interest in the service. So, Netflix in the US 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% penetration of broadband households for Netflix in France and Germany. We are around to keep testing this, if that rises to 10% over the next year, that’s the real bullish indicator, but we think they have got a universal good in their hands. We like Netflix as a stock and as a company.