Why Analysts Have Stayed Bullish on Netflix

Netflix (NFLX) has seen its stock nearly double this year after two stellar quarters, with subscriber growth beating analysts’ estimates on both occasions. The latest surge came after Goldman Sachs analyst Heath Terry raised his price target on the stock from $390 to $490. Netflix has informed investors that it expects to continue to generate negative cash flow over the next few years, which suggests that the company will continue to put cash toward creating content to attract more subscribers.