Netflix stocks go crazy due to high streaming demand

isaac

April 29, 2015 5:07 PM

Video streaming has become a multi-billion dollar business these days with U.S. based Netflix as one the major global players being responsible for an astonishing 32.3% of total download web-traffic in North America.

Netflix stock is soaring

Netflix Inc. was founded by Marc Randolph and Reed Hastings in Scoots Valley, with headquarters in Los Gatos, California on August 29, 1997. Now Netflix is operating in more than 41 countries around the world. Its business model is a subscription-based platform, where users can watch movies and TV series online.

While it started as a pure DVD rental company that sent DVDs per mail in the past, but it stopped this service in 2007 completely. These days, Netflix is following a huge global expansion strategy said to be one of the most successful dot-com enterprises already.

This year’s report shows that Netflix’s market value now stands at $32.9 billion, exceeding traditional TV networks like CBS, which has a market value of $30.6 billion. The first months of 2015 have been very successful for Netflix with its stock rising by 14.7% already.

The stock has surpassed analysts’ estimates continuously, now being forecasted to reach $900. The average Netflix user streams movies and programs for two hours a day, which is an increase of 18 minutes compared to 2014.

Despite the increasing competition from platforms provided by Time Warner, iTunes, Dish Networks’ Sling TV, or Cablevision, Netflix seems to be not only a customer’s favourite, but an investor’s as well.

Content provided by TopCheck.com.ng - Nigeria's free price comparison tool for financial products

isaac