Netflix Just Hit a New Record High After Goldman Sachs Predicted This

While AT&T was making headlines for getting approval to merge with Time Warner this week, Netflix was also making headlines.

Netflix saw its shares surge to a new record high after Goldman Sachs Group Inc. predicted the company would surpass AT&T.

Analyst Heath Terry of the firm upped his price target on Netflix shares to the highest on Wall Street at $490. Previously the firm had a $390 price target on the stock.

According to Terry, the streaming giant will see sales growth that will outpace the amount it will shell out on content next year.

The analyst wrote, “While the widening gap between Netflix’s growing income statement profits and the increasing cash flow statement deficit has seemingly had little impact on the company’s valuation, we do believe that as the gap begins to reverse and Netflix’s cash flow inflects positively in the coming years, NFLX shares should benefit.”

Over the last year, shares of Netflix have gained over 140%.

Disclaimer: We have no position in Netflix, Inc. (NASDAQ: NFLX) and have not been compensated for this article.