Netflix stock price hits record high as coronavirus ups demand

Shares of Netflix (NASDAQ:NFLX) have surged to a record high this week as the streaming giant continues to receive bullish recommendations from Wall Street. 

Fundamental analysis: Everyone is bullish

Analysts from Goldman Sachs, Morgan Stanley, and J.P. Morgan have all issued a “buy” or “overweight” rating on the Netflix stock as investors continue to bet on streaming during the coronavirus pandemic. 

Wlodarczak also raised the price target on Netflix’s stock to $490, around $53 higher than the closing price on Thursday. The same price target is also set by Goldman, while Morgan Stanley aims for $450. JP Morgan sees Netflix stock trading at $480 as a fair value.

Some analysts, like Brian White from Monness, Crespi, Hardt & Co, see the increase in the number of hours spent inside homes as an opportunity to introduce new users to its service.

The streaming giant is scheduled to report its first-quarter results on next Tuesday. Surveyed analysts are expecting earnings of $1.61 a share for the period, on revenue of $5.73 billion.

Technical analysis: The march higher continues

Shares of Netflix have gained more than 50% in the past few weeks, easily surpassing the previous record high of $423.21, set in 2018. The price action has also cleared an important resistance near the $425 handle. 

A weekly close above this level opens the door for a test of the key resistance block, starting from $460 to $475 (the rectangle). This block consists of three different Fibonacci extensions and it represents a major target for the buyers. 

On the downside, any pullback towards the $385 - $395 support is likely to be bought. 

Summary

Shares of Netflix have gained around 50% in the past few weeks, hitting the new record high near the $450 handle. Analysts from Goldman Sachs, Morgan Stanley, and J.P. Morgan have all issued a “buy” or “overweight” rating on the Netflix stock a week before the streaming giant is due to report its Q1 earnings.