The ongoing crisis surrounding COVID-19 is severely hurting the the entertainment industry, as well as the overall economy as a whole. However, a couple of companies have services catered directly towards people stuck at home, and they are starting to thrive in the midst of this pandemic. Netflix is one such company. On Tuesday, the streaming service stocks hit new record highs, showing that users are streaming more content than ever before.
Netflix stock has climbed 4% to $413.55 this week, the highest it has ever been. So far this year, Netflix is up 25% from its numbers entering 2020, showing just how much the company continues to grow, even in the midst of a crisis such as this. The numbers and growth will be more clearly laid out by Netflix during the company's quarterly earnings call later this month.
“Into the quarter, this is a stock that has materially outperformed the broader market with shares up about 27% YTD compared to a roughly 12% decline in the S&P 500 as of Tuesday’s close,” said analyst Jeff Marks, with Jim Cramer’s Action Alerts Plus. “And it is rightfully so, because Netflix and its namesake streaming service is a winner from people being told to stay in their homes, representing a shift in consumer habits that has likely accelerated the cord-cutting trend.”1comments
Another company finding a similar success in the middle of this pandemic is Amazon, but not necessarily because of its streaming prowess. The Amazon service is designed to bring everyday items directly to the doorsteps of customers everywhere, and there's nothing quite as imperative at the moment. Amazon has also hit all-time highs in its stocks this week, rising 5% to $2,283.32 and posting a year-to-date rise of 24%.
There are other streaming services and home delivery companies out there, but none are quite as established as Netflix or Amazon, making them go-to brands for customers during the crisis.