Netflix shares have outperformed the industry in 2017 with a 55% increase in stock price. The California internet television provider is a favourite amongst our analysts and is expected to continue performing in 2018.
Revenue in the first nine months of 2017 rose by 32% to US$8.4 billion, and that figure could easily increase in 2018 as the company has implemented measures to promote revenue, such as focusing on producing more original content. In fact, Netflix has plans to release over 80 original movies in 2018.
Increasing original programming was a smart move for Netflix even though the media firm received backlash from the public about its massive spending. Netflix spent a whopping US$6 billion on original programming alone for 2017. However, the investment paid off as they won several Emmy awards for shows such as Stranger Things, House of Cards and The Crown.
Furthermore, the company plans to increase the number of international subscribers from 4.45 million to 5.05 million, adding to their current 56 million international subscribers.
It is apparent viewers welcome the changes and will continue to support Netflix as they transform the way people view TV.
The current market price for Netflix is US$201.7; a good buy for investors who want growth in 2018.
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