Netflix (NASDAQ: NFLX) stock is outperforming other US Big Tech giants as investors are betting on the world’s largest streaming service to push ahead during the coronavirus outbreak, which forces people to stay at home. Its shares rebounded sharply in the last couple of weeks; the stock is currently trading at slightly below an all-time high of $375 and are up 15% in the year to date. After a record number of streaming minutes in March, Netflix expects to generate robust growth in subscribers and user engagement in April due to lockdown measures. Although Netflix company has suspended its production activities, it claims to have enough content to keep users entertained over the next few months.
California-based Netflix this month experienced a 57% growth in downloads in Italy and a 34% jump in Spain according to the data from SensorTower. Its user growth is also high in the US, Canada, and Asia Pacific region where streaming demand surged 85% year-on-year in March.
The business is nabbing the biggest share of any streaming platform in more than 180 countries.
“Streaming is a big part of a lot of consumers’ lives right now. We have seen tremendous growth in just how much streaming is going on over the last few weeks as COVID-19 becomes more prevalent across many parts of the country,” said Scott N. Brown, head of TV product at data firm Nielsen.”
Netflix’s Spenser Confidential (pictured) has generated the largest streaming minutes while it’s other shows including On My Block and Love Is Blind has also been gaining consumer’s attention.
Netflix had added 28 million users last year despite increasing competition from Disney (NYSE: DIS) and Apple (NASDAQ: AAPL). The company’s earnings are also likely to improve amid the uptick in pricing and operation efficiencies, which will also help it in enhancing its cash flow generation potential. The company expects it will burn $2.5bn in cash this year, an improvement from negative cash flow of $3.3bn in 2019.