Hot stock to watch: As the coming of the high-speed Internet era and people’s viewing habits have been changed by high-performance mobile devices, the total watch time of the U.S. online video site Netflix (NFLX) exceeded 1 billion hours in June this year,.
Netflix CEO Reed Hastings announced Tuesday this performance. Citigroup analyst Mark Mahaney released a research report in the prior day, to express the optimism on Netflix’s future development. Promoted by the two good factors, NFLX stock price closed at $72.04 Tuesday, up $4.19, or 6.2% over the previous trading day’s closing price, but still far below the 52-week high of $304.79 in July last year.
Insiders pointed out that although Netflix’s service is increasingly popular, the company is still in face of enormous challenges in the future. If television companies and TV producers believe the watch form of streaming media is a threat to their revenues, Netflix will be likely to see further increase in the licensing fees of content.
One of the reasons why Netflix’s streaming media service is hot, is that this service only charges a monthly subscription fee of $8, and users are unlimited to watch videos, meanwhile isolated from commercial advertising. The current user base of Netflix’s streaming service has reached 2650 million worldwide, more than the 22.3 million subscribers of the largest U.S. cable television provider Comcast.
NFLX stock price is currently above the 50-day moving average of $71.58 and the 200-day moving average of $69.37. Netflix has a market value of $4.00 billion.