The Story of Netflix, Inc. (NFLX)’s Soaring Stock Price & Yahoo! Inc. (YHOO)’s Identity Crisis

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Netflix, Inc. (NASDAQ:NFLX)’s stock has rose over $32 yesterday and most of it is due to the growing demand of the channel during the Soccer world cup. The company is also trying hard to generate a lot of original content and talk shows lately. On the other hand Yahoo! Inc. (NASDAQ:YHOO) is also trying hard to compete on a similar base by getting more original shows on its online channel.

Netflix, Inc. (NASDAQ:NFLX), Yahoo! Inc. (NASDAQ:YHOO), community, world cup 2014

Jon Fortt and the “Squawk Alley” team of CNBC were discussing the case of how these companies differ and why the stock of Netflix, Inc. (NASDAQ:NFLX) is trading very well on the market currently. Goldman Sachs Group Inc (NYSE:GS) has upgraded Netflix, Inc. (NASDAQ:NFLX) and the analysts were discussing the reasons behind this upgrade. The company had its best start to the second half since 2011 and the price target set by Goldman Sachs Group Inc (NYSE:GS) is $590 currently. It was previously $380 which Netflix, Inc. (NASDAQ:NFLX) has crossed already.

It seems like Goldman Sachs Group Inc (NYSE:GS) has taken the company’s word as the face value. Reed Hastings recently said in the executive meeting that International business will be profitable by the end of 2014 or early next year and Goldman Sachs Group Inc (NYSE:GS) has probably believed that. Netflix, Inc. (NASDAQ:NFLX) stands at $473.10 pre-market today and according to few analysts one of the reason for this might be the huge demand of the online streaming company for watching the World Cup videos and they feel that the change where people watch more online videos has happened and Netflix, Inc. (NASDAQ:NFLX) should benefit from this.

Yahoo! Inc. (NASDAQ:YHOO) is planning to get rights of existing content whereas Netflix, Inc. (NASDAQ:NFLX) spends a lot of money to produce the content. The company is also ordering a new series of the TV comedy “Community” and it’s getting rights of what has already been produced or something that has proved audience.

“I don’t really understand what Yahoo is. Is it a media company?; Is it a TV company?, Is it a Katie Couric company?” an analyst stated

So according to the analysts, Yahoo! Inc. (NASDAQ:YHOO) doesn’t have an identity at the moment and it should be focused on what it needs and probably find the broadest appealing show.

Disclosure: None

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