{"id":22301,"date":"2023-06-14T00:14:43","date_gmt":"2023-06-14T04:14:43","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/will-netflix-stock-recover-to-its-pre-inflation-shock-highs\/"},"modified":"2023-06-14T00:14:44","modified_gmt":"2023-06-14T04:14:44","slug":"will-netflix-stock-recover-to-its-pre-inflation-shock-highs","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=22301","title":{"rendered":"Will Netflix Stock Recover To Its Pre-Inflation Shock Highs?"},"content":{"rendered":"
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Netflix stock currently trades at $409 per share, about 41% below its pre-inflation shock high of about $692 seen on November 17, 2021. The stock could have considerable potential for gains if its recovers to these levels. Netflix
\n NFLX
\n <\/fbs-ticker> stock was trading at a low of about $167 in mid-June 2022, just before the Fed started increasing rates. The stock has gained about 144% from these levels. In comparison, the S&P 500 gained about 13% during this period. In recent quarters, Netflix has benefited from stronger than expected per subscriber revenues, which have been driven by price increases. Netflix\u2019s move to launch an ad-supported plan and its move to cut down on password sharing also appears to have resonated with investors.<\/p>\n

Returning to the pre-inflation shock level means that Netflix stock will have to gain about 69% if the stock recovers from $409 currently to its pre-shock highs of $692. While it\u2019s possible that the stock may recover to those levels, we presently estimate Netflix valuation<\/strong> to be around $363 per share, about 9% below the current market price. This is because the recent uncertainty in the financial sector has made investors concerned about a potential recession. Netflix\u2019s business may see an adverse impact if the U.S. economy were to go into recession, with consumer spending cooling.<\/p>\n

Our detailed analysis of Netflix upside post-inflation shock<\/strong> captures trends in the company\u2019s stock during the turbulent market conditions seen over 2022 and compares these trends to the stock\u2019s performance during the 2008 recession.<\/p>\n

2022 Inflation Shock<\/strong><\/p>\n

Timeline of Inflation Shock So Far:<\/p>\n

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