8 Tech Companies Set to Shine in a Social Distancing World - 1 of 8

#1 - Netflix (NASDAQ:NFLX)

One of the biggest beneficiaries of the world being stuck indoors is Netflix (NASDAQ:NFLX). The FAANG stock was facing a harsh reality as more competitors were entering the streaming space. But the imposed social distancing is creating an opportunity for Netflix for two reasons.

First, they have the advantage of simply being available. Although their most recent earnings report showed the company is losing subscribers, the company still has one of the strongest user bases in the streaming industry.

Second, unlike a snowstorm or other external event that keeps people at home, the coronavirus has shut down the world of sports. Netflix can successfully compete with traditional television programs and movies. It has a harder time being a choice for viewers over events like March Madness, the NBA playoffs, and the Masters. All of these events have been canceled or postponed in the wake of the coronavirus.

The long-term outlook for Netflix still presents some challenges. Competition is only increasing. And while consumers are showing they may have an appetite for more streaming services than they have previously suggested, Netflix still faces some tough math. They will almost certainly lose more subscribers as their most popular title, The Office, exits the platform in 2021. And, while they have a solid track record of Netflix original series, those programs cost a lot of money to produce. Declining revenue and rising costs is not a good formula, but as a short-term pick the stock looks good.

About Netflix

Netflix, Inc provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices. Read More 

Current Price

$610.56

Consensus Rating

Moderate Buy

Ratings Breakdown

22 Buy Ratings, 11 Hold Ratings, 1 Sell Ratings.

Consensus Price Target

$614.75 (0.7% Upside)