Netflix announced some big news on Monday. The video streaming company who airs the shows “Stranger Things” and “House of Cards,” announced that its subscriber count has increased 8.6% to 52.03 million at the end of the June quarter. This has outshined domestic customer numbers of 51.92 million.
After the news, shares of the stock soared to a record high and added roughly $7 billion to its market cap.
After the news. mmany brokerages raised their price targets on the stock including Morgn Stanley and JP Morgan. Both firms raised their price target on Netflix to $210.
Analysts at Morgan Stanley wrote in their note, “We believe the rapidly growing content offering led by originals, that in aggregate garnered 91 Emmy nominations last week, drove the stronger new sign-ups.”
The company’s original tv shows brought in more customers for Q2 than Netflix had previously anticipated. Co-founder Reed Hastings has remarked that positive returns makes him feel more comfortble to keep investing in original shows.
Michael Pachter, an analyst with Wedbush has said, “We think that Netflix is destined to be a cash burning high growth company until it changes its strategy and accepts its fate as a highly profitable slow growth company.” His price target is $82 with an “underperform” rating.
Netflix stock has a median average price target of $192.50 from analysts.
Disclaimer: We have no position in Netflix, Inc. (NASDAQ: NFLX) and have not been compensated for this article.