Netflix Nears All-Time Stock High on Bullish Analyst Subscriber Survey

Reed Hastings -NETFLIX-January 17, 2020-Getty-H 2020

Netflix co-CEO Reed Hastings

A Piper Sandler study found Netflix subscribers are more likely to remain with the video giant post-pandemic, when compared with subscribers for rival streaming services and cable TV. 

Netflix stock neared an all-time high after a Piper Sandler survey of 1,000 Americans found 41 percent plan to retain their Netflix subscription after COVID-19 lockdown rules ease.

On Wednesday, Netflix shares closed up 11.6 percent at $547.53, after reaching an intra-day all-time high of $549.04.  The previous all-time high for Netflix stock was a closing price of $548.73 reached on July 10, 2020.

The jump in Netflix's share price followed an Aug. 25 Piper Sandler survey that measured subscriber satisfaction with streaming and cable TV subscribers as Netflix faces new competition from HBO Max and Disney+,  while also competing with Amazon Prime, Hulu and traditional cable TV.

The survey found Netflix subscribers were more likely than those of rival streaming platforms to keep their subscriptions post-pandemic.  Against the 41 percent of Netflix customers likely to remain as subscribers after lockdowns lift, Amazon Prime Video was second on the Piper survey list with 28 percent indicating they intend to stay loyal, followed by 17 percent of Disney+ customers,  19 percent of cable TV and 7 percent of HBO Max customers saying they will remain subscribers for the long haul.

"In a separate survey of almost 600 people, we found that the majority of (Netflix) subscribers would absorb a price increase, with a weighted average price increase of $2.20/month," Piper analyst Yung Kim wrote in a research note.

Wall Street analysts have carefully weighed subscriber growth for major U.S. streaming services to see how well they are faring as Americans cocoon at home during the Coronavirus spread.

In July, Netflix said it added 26 million subscribers during its second quarter financials, compared with 12 million in the same period last year, as cord-cutting impacts traditional pay TV providers.

"Overall, we continue to believe Netflix is well positioned to capture an outsized share of traditional content consumption dollars as that spending migrates to streaming," Kim added.