- The stock price of Netflix Inc (NASDAQ: NFLX) increased by over 2% pre-market today. This is why it happened.
The stock price of Netflix Inc (NASDAQ: NFLX) increased by over 2% pre-market today. There are not any direct news reports from the company so it appears there are external factors at play.
In this case, it appears that investors are responding to news that the World Health Organization will be holding an emergency meeting today to assess a coronavirus variant spreading across South Africa. Scientists are uncertain whether this variant is more deadly or more contagious.
“Initially it looked like some cluster outbreaks, but from yesterday, the indication came from our scientists from the Network of Genomic Surveillance that they were observing a new variant,” said Minister of Health Joe Phaahla via CNN, noting that it is unclear where the B.1.1.529 emerged from.
The B.1.1.529 variant was detected in South Africa, Botswana, and in a traveler going to Hong Kong from South Africa. This variant has a high number of mutations with over 30 in the key spike protein, according to genomic scientists.
Netflix is the world’s leading streaming entertainment service with over 209 million paid memberships in over 190 countries enjoying TV series, documentaries, and feature films. Over the last year, Netflix saw rapid growth partially due to social distancing lockdowns caused by the COVID-19 pandemic.
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.