Netflix (NFLX)

(source:www.journaldugeek.com)

Over the period of April 5th to April 19th, Netflix (NFLX) stocks prices jumped by 16.92% in 14 days in agreement with the bullish I Know First forecast.

Unsurprisingly, Netflix is one of the favourite occupations of the confined population. Since the beginning of the confinement, the SVOD platform has gained 15.8 million subscribers (+9.4%).

Netflix breaks an all-time record and sees its share price increase by 40% since the start of confinement. The stock has reached almost $450. This is the first time since the company went public in 2002 that it has reached such heights. The firm is now worth close to $190 billion. 

“With the announcements of mandatory confinement in many countries […], many more households joined us” CEO Reed Hastings explains in his letter to shareholders. But the turnover did not explode for all that. Due to the significant devaluation of the dollar, Netflix earned $5.77 billion in the first quarter of 2020.

The company already anticipates a decline after the confinement. According to the platform owner, it will all depend on the end date of the confinement. He also anticipates that the former confined people will want to take “a TV break”. “It is unlikely that those who did not join us during the confinement will do so afterwards,” adds Reed Hastings. Currently, filming of Netflix productions is being halted because of the Covid-19 pandemic. So new releases could be delayed, making it difficult to subscribe to the service. 

Amazon (AMZN)

Over the period of April 5th to April 19th, Amazon (AMZN) stocks prices jumped by 24.57% in 14 days in agreement with the bullish I Know First forecast.

In this period of confinement, e-commerce, the cloud and entertainment are the three sectors that are under heavy pressure, so this is an incentive to subscribe to Amazon Prime. Most of people have turned to online marketplaces. As millions rely on the company for everything from grocery delivery to cloud computing. “One thing we’ve learned from the COVID-19 crisis is how important Amazon has become to our customers,” Bezos wrote. It is struggling to keep up with demand spikes from customers confined to their homes.

Amazon has hired 100,000 new warehouse workers to keep up with the demand and plans to add an additional 75,000. Bezos said this will cost the company more than $500 million through the end of April. “While we recognize this is expensive, we believe it’s the right thing to do under the circumstances,”he wrote in the letter. Amazon said “We are making the decision to temporarily prioritize basic food items, medical supplies” and it has been in effect since 5^thApril.

Amazon employees in the warehouses complain about insufficient health measures to ensure their safety in the workplace. Cases of coronavirus have been detected in Amazon warehouses in Europe and the United States. On April 14, France forced Amazon to limit its deliveries to essential products only, because of the risk of Covid-19 contamination for its employees. Amazon decided to close its French warehouses. On April 9^th, the company has set up a team dedicated to test its employees for coronavirus.

Nvidia (NVDA)

Over the period of April 5th to April 19th, Nvidia (NVDA) stocks prices jumped by 19.85% in 14 days in agreement with the bullish I Know First forecast.

NVIDIA announced its intention to acquire Israel-based Mellanox for $125 per share in cash, or $6.9 billion. The transaction will be at the end of April.