By
Mayowa Adebajo
February 13th, 2024
KeyBanc kept its overweight rating on the Netflix stock and said that the company’s content slate is resonating with subscribers.
Netflix Inc (NASDAQ: NFLX) stock closed yesterday trading at $599.06, up 2.61% from the day’s opening price. The gains extended during the after-hours trading session with approximately 0.82% as of September 29, 2021, 7:59 p.m EDT. Netflix stock rose after the announcement that the company bought video game maker Night School Studio to diversify its revenue sources.
Additionally, KeyBanc kept its overweight rating on the streaming company’s stock and said that the company’s content slate is resonating with subscribers.
The positive news culminated in more gains as NFLX shareholders and analysts became more optimistic about the company’s future growth prospects. Consequently, the company’s stock market closed yesterday at $16.54 below its 52-week high of $615.60 that was attained on September 8th.
From a technical standpoint, the company’s stock market looks ready to discover new prices, a hereby a new all-time high. According to metrics provided by TradingView, Netflix stock just broke out of a multi-week consolidation that began mid-July of 2020.
Supported by the 200 moving average (MA) on a weekly chart, NFLX shares are on a long-term bull market. From a short-term perspective, Netflix stock appears to have a strong support level of around $565, from a daily chart. Should the fundamentals support the technical layout, a further breakout towards the end of the year remains imminent.
The gains in the streaming giant come at a time when major market indexes reported daily gains. According to market analytics provided by MarketWatch, The Dow and the S & P 500 closed yesterday up 0.26%, and 0.16% respectively.
Bigger Picture on Night School Studio Acquisition by Netflix
The acquisition of Oxenfree hitmaker, Night School Studio, is strategic for the future growth prospects of Netflix and its products. Notably, the video streaming company will be adding revenue in its coming quarters, thereby giving it a better viewpoint compared to its competitors.
The Night School Studio will on the other hand have access to a greater market. Consequently, its future growth prospects remain higher than before it stood alone.
“Of course, it’s a surreal honor to be the first games studio to join Netflix! Not only do we get to keep doing what we do, how we like to do it, but we get a front-row seat on the biggest entertainment platform in the world. The Netflix team has shown the utmost care for protecting our studio culture and creative vision. We’ll keep making OXENFREE II. We’ll keep cooking up new game worlds,” indicated Sean Krankel from Night School Studio.