The coronavirus pandemic is having a bad effect on many companies. Most companies are reporting a loss of revenue since the pandemic started. This is because many countries around the world are in a lockdown. Due to this, the US stock market is also suffering. Most companies are seeing their stock price plunge. There is high volatility in the market and investors have no confidence right now.
But there are some companies that are doing really well right now. These are companies that give people to do something at home. Arguably one company that is benefitting a lot from the lockdowns is Netflix. The streaming service is getting high traffic because people are entertaining themselves using shows and movies on Netflix.
Netflix Stock In Red
Netflix’s stock had a worrying opening on Monday, 18 May 2020. The stock had closed at a price of 454.19 USD on Friday, 15 May 2020. This was Netflix’s highest price in 2020. But the stock was down by almost 10 USD barely a half-hour into trading on Monday. The stock was down 445.96 USD at 10:00 GMT. The stock rallied through the rest of the day to close out a price of 452.58 USD. This was a fall of 1.61 USD or 0.35% on the day. Many analysts are putting the stock under red due to certain market conditions.
Why Is The Stock In Red?
Netflix’s stock fell due after investors started putting their money into different companies. Moderna Inc. reported a successful pretrial of a Coronavirus vaccine on Monday, 18 May 2020. This caused many stocks in the market to rise fast. Additionally, there was news from around the world that some economies are reopening. Thus, investors started to put their money into stocks of companies that would do much better once the economy reopens.
Since the success of Netflix depends on people staying home, many people going out at the same time is not going to benefit Netflix. This will only lead to the stock of the company falling in the future. This is why analysts put the stock in the red.
How Was Netflix Performed During The Pandemic?
Netflix is having a great year in 2020. When the pandemic started spreading in February, Netflix stock was at a price of 358.00 USD as of 3 February 2020. Since then, the stock has been continuously rising and peaked at 454.19 USD as of 15 May 2020. As of now, the stock is 452.58 USD, which is 94.58 USD more than where the stock opened in February.