Netflix Stock Forecast: Over 130% Growth This Year

Netflix Stock Forecast 

As the worlds leading Internet television service provider, Netflix has had an explosive year growing 131.86%, since January 7th, 2015 when I Know First published its bullish prediction on Seeking Alpha. In addition to the bullish forecast indicated by the artificial intelligence algorithm, I know first had several fundamental theories as to why Netflix was a strong buy.

netflix stock forecast

First, domestic consumer growth in US was believed to grow as consumers would continue to flock to Internet streaming as the preferred method for media consumption. This trend is especially true for millennials, or the consumers between ages 18 and 34, who appreciate online TV for its flexibility. On January 20th, 2015 Netflix had a total of 57.4 million members, having added 1.9 million US members in Q4 alone, and about 6 million new US members for the year. On October 14, 2015 Netflix had grown to 69.17 million members worldwide.

More important than domestic growth, is Netflix’s entry into the European market, which has an abundance of high-speed broadband Internet users. In 2015 Netflix was already active in France, Germany, Austria, Switzerland, Belgium and Luxembourg. On March 24 2015, Netflix launched in Australia and New Zealand, where CEO Reed Hasting’s explained they had a “fervent fan base”. In October 2015, Netflix launched in Japan, Spain Italy and Portugal. Netflix was able to raise their price in Europe by one Euro, without any negative impact on growth. Netflix also announced their plans to expand to South Korea, Hong Kong, Taiwan and Singapore in early 2016.

Central to I Know First’s bullish prediction was Netflix’s ability to create captivating original content. Netflix already has 11 original series, and has been nominated for a record 34 Emmy Awards this year. Most notably are the original series Marco Polo, House of Cards, The Unbreakable Kimmy Schmidt and Orange Is The New Black, all of which have over 90% viewer ratings on Rotten Tomatoes. Netflix explains that they will continue to focus on original content, which are actually less costly than their licensed content and continue to receive critical acclaim.