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Netflix could benefit from coronavirus concerns

The company's shares rose 0.8 per cent last week

Netflix “is an obvious beneficiary if consumers stay home due to coronavirus (COVID-19 virus) concerns,” according to BMO Capital Market analyst Dan Salmon.

The company’s shares rose 0.8 per cent last week, suggesting in-home services are well-positioned to weather the coronavirus storm.

This comes amid Wall Street’s biggest drop in nine years, as fears spread that the coronavirus may lead to a worldwide recession.

Other tech companies that could benefit from the health crisis include Facebook, Amazon, Peloton and Slack, according to MKM Partners analyst JC O’Hara.

Meanwhile Nexstar CEO Perry Sook said in an earnings call that further quarantine “could potentially benefit our business because we’d be the primary source of entertainment.”

Moody’s Investors Services analysts, led by Neil Begley, also commented: “If the contagion became more internationally widespread but short of panic, more people are likely to seek home entertainment options such as from companies like Comcast and AT&T, and streaming TV shows and films from Netflix, Disney Plus, Comcast’s Peacock, AT&T’s HBO Max and others.”