The Netflix founder and CEO, Reed Hastings has helped to boost the value of his company’s stock by delivering a very bullish message via Facebook.
In the message he speaks about the companies impressive 1 Billion viewers for June and that when Arrested Development and House of Cards debut on his service the figures will be “blown away”.
Now that really is quite some boast; however if anyone should know it is the man himself, surely?
One of the reasons for this bullish approach is perhaps that the streaming media giant has had a good deal of success recently in beefing up its movie and television show catalogue; something that they have been heavily criticised for in the past.
On the back of his upbeat Facebook delivery a number of analysts suggested that stock in Netflix would be well worth a punt, causing a 21% rise in the value on the NASDAQ exchanges.
Last week the share price rose to something close to the $82 a share price, obviously a far cry of the heady days of nearly $300, but nonetheless still heading in the right direction.
Target of $130 per share
It is very likely that they share price will remain strong with Citigroup re-stating their ‘buy’ message, and intern they suggest that the stock is very reasonable priced and they target something in and around the $130 per share mark. Now that would really be something to boast about, Mr Hastings; I will look out for your Facebook message, if and when this happens.
Of course presently Netflix have to remain strong and fight off many of the up and coming competitors, who are all extremely keen to take a slice of the action from Mr Hastings and his Californian based outfit.
However the future is looking very rosy for Netflix as they continue to tie up many high profile movie deals, as well as expanding into new and exciting territories. None more so than at the start of 2012 when they entered the UK and Ireland for the very first time.
But it won’t all be plain sailing for Netflix as the latest threats to their profitability is always just around the corner, an example of this will be the impending joint venture between Verizon and Redbox; this surely must be playing heavily on Hastings. So much so that they have started to re-advertise their own DVD by mail service, something that has taken a real back ward seat over recent times.