Netflix Inc. rose to yet another record after Goldman Sachs Group Inc. raised its price target for the stock to the highest on Wall Street.
The shares gained as much as 5.6 per cent to $384.25 on Wednesday after analyst Heath Terry predicted that Netflix shares will hit $490. He sees Netflix’s sales growth outpacing the amount it will shell out on content in 2019.
Such a run-up would put Netflix’s market value at about $213 billion, exceeding all but 18 of the companies in the S&P 500 Index at current valuations, according to data compiled by Bloomberg. That includes AT&T Inc., Mastercard Inc. and Cisco Systems Inc.
Netflix also got a boost Wednesday by tightening its relationship with the video-game industry. The company is producing an interactive Minecraft series for kids, and it’s licensing its popular “Stranger Things” show for a game.
Although Netflix doesn’t plan to add games to its platform -- disputing a report to that effect -- the push rattled investors of GameStop Corp. Shares of that company fell as much as 7.1 per cent to $13.05 on Wednesday.
Netflix’s market capitalization surpassed Walt Disney Co. and Comcast Corp. last month and now exceeds that of chemicals giant DowDuPont Inc. and chipmaker Nvidia Corp.