Quarantine Boosts Netflix And Amazon Stocks
Certain parts of the entertainment industry may be suffering economically, but streaming giant Netflix looks set to benefit as people all over the world are quarantined in their homes.
Deadline reports that Netflix stock has risen four percent to $413.55. This year, Netflix stock has already gained 25 percent. Analysts believe this is because coronavirus-induced lockdowns have made Netflix essential entertainment while moviehouses are closed and public gatherings are prohibited.
Deadline also points out that another factor that contributed to this stock rise is the fact that Netflix already has a longtime relationship with its subscriber base as well as a huge amount of original shows and movies that are not affected by the stoppage in production caused by the pandemic.
The Hollywood Reporter also noted that shares of Amazon had reached a 52-week high, with stock prices rising to $2,292 at one point during trading. It is believed that the coronavirus lockdown would also benefit Amazon’s Prime video streaming division. Prime currently has 150 million members, close enough to Netflix’s 167 million subscribers. The rise in Amazon stock could also be attributed to its larger role now as a provider of basic goods to people who cannot go out of their homes because of implemented lockdowns.
Another streaming platform that has seen its stock price rise is Roku. Stock prices for Roku are now at $106.53, up 10.3 percent from before.
Streaming services are faring better compared to the film industry. The North American box office suffered a $600 million deficit in the month of March because of closed cinemas because of the coronavirus pandemic. Closures in South Korea and Japan also signal a huge loss for the global film industry amounting to $5 billion. The lockdowns have also seen movie releases moved further down the calendar. For instance, Pixar’s latest movie, “Soul,” will now premiere in November.
Global lockdowns are not likely to end soon as the number of confirmed COVID-19 cases continue to rise around the world. The World Health Organization situation report for Apr. 15 says the number of confirmed COVID-19 cases around the world is now at 1,914,916 people. New cases make up 70,082 of those confirmed cases. The number of fatalities caused by COVID-19 amounts to 123,010 people, with 5,989 of those being new deaths.
In the United States, the Centers for Disease Control and Prevention update for Apr. 15 puts the number of confirmed coronavirus cases at 605,390 people. The number of dead now number at 24,582 people.