clock menu more-arrow no yes

Filed under:

Netflix will benefit from the coronavirus, analyst says

You may be worried about the coronavirus hurting the stock market. But Netflix’s stock is about to go up

FILE - This June 24, 2015, file photo, shows the Netflix Apple TV app icon, in South Orange, N.J. Netflix reports financial results on Monday, July 18, 2016.
FILE - This June 24, 2015, file photo, shows the Netflix Apple TV app icon, in South Orange, N.J. Netflix reports financial results on Monday, July 18, 2016.
Dan Goodman, Associated Press

Netflix will be one company that will benefit from the coronavirus, and it’s for the exact reason you think.

What’s going on:

BMO Capital Market analyst Dan Salmon told Yahoo! that Netflix will benefit from the coronavirus because people will elect to stay home and watch movies and television rather than head outside.

  • Salmon said Netflix “is an obvious beneficiary if consumers stay home due to coronavirus (COVID-19 virus) concerns, and this has been reflected in considerable stock price outperformance this week.”
  • Netflix’s shares jumped 0.8% before the close on Thursday despite one of the worst weeks on Wall Street since the Great Recession, according to Yahoo! News.

Other streaming services will do well, too

  • Moody’s Investors Services analysts said in a Jan. 29 report that multiple streaming services will find success since people will stay at home, according to the New York Post.
  • The report said: “If the contagion became more internationally widespread but short of panic, more people are likely to seek home entertainment options such as from companies like Comcast and AT&T, and streaming TV shows and films from Netflix, Disney Plus, Comcast’s Peacock, AT&T’s HBO Max and others.”

Facebook, Amazon and Slack prepare as well

  • MKM Partners analyst JC O’Hara said tech companies for internet users would succeed, too, since people wouldn’t have much to do, according to CNBC.
  • “We tried to identify what products/services/companies would potentially benefit in a world of quarantined individuals,” O’Hara wrote, according to CNBC.