Netflix, Inc. (NASDAQ:NFLX) stock rallied to all time high on Monday before the results of Emmy Awards, where the online streaming company has 31 nominations, says a report from CNBC. Investors are bullish on the company expecting it to surpass the cable companies and take awards home. The stock reached an all time high of $485.30 earlier on Monday before dropping to $480.93, an increase of 0.4% for the day.
Nominations, a good marketing for Netflix
Amazon and Hulu are striving to attain market share in the video on demand space, whereas Netflix is ahead of its competitors and is matching up to traditional media giants like HBO. Media and entertainment equity analyst at Standard & Poor’s, Tuna Amobi said that the company would derive maximum profit from the award nominations even if it is not on the top. Amobi said that the free publicity done by Emmy is an ad-on, which in turn has increased the stock price of the company.
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“There’s no question that it has potentially significant promotional benefits,” Amobi said, and added that Netflix will derive benefit from the lower marketing cost. According to Amobi, Netflix can now build a marketing campaign around it. Netflix has expanded its subscriber base on the back of original content, and the number of viewers will boost further with the nominations.
Not many Emmy’s, stock still up
Netflix original series managed to grab just seven awards out of whopping 31 nominations. The most important awards were taken by the cable TV shows in the award ceremony. Some of the categories where Orange is the new Black won awards are Outstanding Guest Actress in a Comedy Series, Outstanding Casting for a Comedy Series, Outstanding Single-Camera Picture Editing for a Comedy Series. House of Cards managed to take one award home in the category sound mixing for a comedy or drama series. Despite just seven Emmy’s, the streaming company’s share was up 0.32% after-hours.
Netflix stock has gained 73% over the last year, above the S&P 500 that rose more than 20% over the same period. The company has given a guidance of 89 cents in earnings and $1.22 billion for revenue.According to the analysts, the company is expected to post earnings of 91 cents per share on the revenue of $1.41 billion, an increase of 27% year over year in revenue and 75% on EPS. The company will post its third-quarter earnings on October 20.