It seems $200 is the number for Netflix Inc. (NFLX) .
Following last night's earnings, Wall Street seems fixated for the most part on a $200 price target for the Netflix:
- Stifel raises its price target to $200 from $170, reiterates Buy
- Pivotal Research Group raises its price target to $200 from $175, reiterates Outperform
- Rosenblatt upgrades NFLX to Buy from Neutral; target of $200
There are some that are higher:
- RBC raises its price target to $210 from $175, reiterates Outperform
And some that are lower:
- FBR raises its price target to $172 from $145, reiterates Market Perform
- Needham reiterates its Hold rating
Stepping back from Netflix's earnings, we can observe a few confirming data points for the investing themes that Lenore Hawkins and I use.
First, the shift to streaming media consumption is accelerating across the globe, which is a positive for our Connected Society investing theme and bodes well for data center companies such as Digital Realty Trust Inc. (DLR) and DuPont Fabros Technology Inc. (DFT) as well as others such as Akamai Technologies Inc. (AKAM) and Cavium Inc. (CAVM) that offer solutions to boost video traffic speeds.
Second, in keeping with our Content is King theme, Netflix's comments show that not only will consumers flock to quality content, but having the right content is key as it looks to grow its footprint across the globe. To us this bodes well for content companies such as Walt Disney Co. (DIS) over the long term. Disney currently is in a transition period with its all-important film business, but that should break later this year when it releases its latest Marvel and Star Wars movies.
Over the next few weeks, we'll look into comments from Comcast Corp. (CMCSA) and Verizon Communications Inc. (VZ) as well as other cable operators for the impact on their TV businesses, while we look for further confirmation of these two themes from AT&T Inc. (T) and its own streaming efforts with DirecTV Now as well as Amazon.com Inc.'s (AMZN) Prime Video growth.
(This commentary originally appeared on Real Money Pro at 8:55 a.m. ET on July 18. Click here to learn about this dynamic market information service for active traders.)