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Netflix Surges on June 20, Tops Comcast and Disney in Market Cap

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Netflix stock closed at yet another historic high on June 20

Streaming giant Netflix’s (NFLX) stock surged another 2.9% on Wednesday, June 20, closing at a new high of $416.76. Netflix’s market cap was ~$181.2 billion on the day—surpassing Disney (DIS) and Comcast (CMCSA)—making it the most valuable media company in the United States. 

Netflix’s next big target is carrier Verizon (VZ), which has a market cap of ~$198.0 billion. Netflix stock has been surging recently after a number of analysts increased their price targets for the stock.

Netflix’s revenues expected to grow more than 40% in Q2 2018

As the graph above shows, Netflix’s (NFLX) revenue growth has accelerated over the past few quarters. This trend occurred on the back of robust growth in its global subscriber base, which didn’t decelerate despite a price hike last year. This suggests that the company still has scope to increase its subscription rates.

Netflix is slated to report its second-quarter results on July 16. Wall Street is forecasting that its revenues could rise more than 40.0% year-over-year and that earnings could more than double.

Analysts are also predicting an addition of 5.0 million global subscribers. Netflix stock soared after it reported its last few quarterly earnings, as the company beat subscriber and revenue growth handily.

However, its valuations look steep. At current prices, the markets seem to have factored in a lot of future growth.

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