Last Wednesday, the share price of Netflix achieved a record high after doubling in value since the start of this year. It is now officially the second-best performing member of hte S&P 500 in 2018, after it reached a year-to-date increase of over 103 percent.
The share price of the video streaming company was up by 3.41 percent as the markets closed at $392.87 (£295.99). Netflix is considered to be the second firm to have doubled in the S&P 500 so far this year, coming in a month after Abiomed, the medical implant device manufacturer.
Twitter is the next stock that is set to double, having gained over 90 percent this year so far, a milestone that Netflix was able to reach last Tuesday.
In a bullish note that was released on Wednesday, some analysts at Goldman Sachs forecasted that Netflix will add approximately 32.5 million net subscribers in 2019, as it went past the subscriber addition estimates in both of the quarterly reports of 2018.
The note also predicted that Netflix would be cash flow-positive by 2022.
The said movement was initiated by Heath Terry, an analyst from Goldman Sachs. He raised his price target on the stocks of Netflix to $490 per share — an increase from the previous target of $390, and the highest among the 360 analysts of Wall Street who cover the stocks of the company.
In the note, Terry stated: “We believe [Netflix’s] growing content offering and expanding distribution ecosystem will continue to drive subscriber growth above consensus expectations.”
He added: “While our target multiple represents a clear premium relative to the sector, we believe it largely reflects Netflix’s long-term subscriber and margin potential.”
The stock was trading at $375.24 per share as of 11:45 a.m. ET. The shares of Netflix are up by more than 95 percent year to date, and the company’s market capitalization (currently more than $164 billion) was recently able to surpassed that of Disney’s.