Tech

Netflix surges 7%, hits 52-week high as investors flock to stay-at-home stocks

Key Points
  • Netflix reached its 52-week high Monday. 
  • Shares of Netflix rose to $400.51 per share before closing at $396.72. 
  • Investors have been flocking to stay-at-home stocks, citing increased consumer demand.
Reed Hastings, co-founder and CEO of Netflix attends the inauguration of Netflix new offices in Paris, France, January 17, 2020.
Gonzalo Fuentes | Reuters

Shares of Netflix surged 7% to reach a 52-week high of $400.51 per share Monday, before closing at $396.72 per share. 

Netflix stock is up more than 22% year to date, while the broader S&P 500 is down 14.26% year to date and 25% off of its peak. The Dow Jones Industrial Average closed down 1.37%, while the S&P 500 was off by 1.01%. The Nasdaq Composite rose 0.48% on Netflix's spike. 

Investors have been flocking to stay-at-home stocks. Investment bank William Blair said in late March that Netflix may see an increase in subscribers because people are stuck at home spending more time watching video services. Needham has suggested coronavirus could be bad for Netflix, however, since it's seen as a luxury good for people who may be cutting back on expenses.

Similarly, Amazon was less than 5% from its 52-week high in early afternoon trading.

Amazon has seen a surge in shoppers looking for supplies and groceries to get them through the emergency, evidenced in part by its increased hiring in warehouses. It's seen high demand for Amazon Web Services from companies such as Slack and Zoom, who rely in part on Amazon infrastructure while experiencing their own surge in users.

As of Monday, there are more than 558,526 confirmed cases and at least 22,146 deaths in the U.S., according to data from Johns Hopkins University.

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