Shares of streaming major Netflix (NASDAQ:NFLX) jumped in the early session today after the company announced a long-term deal that brings WWE Raw to Netflix’s offerings beginning next year. Raw is the weekly flagship program of WWE, a part of the TKO Group (NYSE:TKO).
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Notably, Raw’s shift comes after the program called linear television its home for nearly three decades. Now, NFLX will be the exclusive streamer for Raw across major markets, including the U.S., Canada, the U.K., and Latin America. Add to this, Netflix will offer all WWE shows and specials outside the U.S. market as available. This will include, WWE’s SmackDown, NXT, WrestleMania, SummerSlam, and Royal Rumble.
Importantly, the deal adds Netflix’s global reach to WWE’s plethora of offerings. Raw is the top-ranking show on USA Network, bringing in nearly 17.5 million unique viewers in a year. Additionally, its over a billion followers on social media platforms and round-the-year action promise even more eyeballs for Netflix.
Separately, Netflix’s fourth-quarter results are also awaited today. Analysts expect the company to post an EPS of $2.21 on revenue of $8.72 billion for the quarter.
What is the Outlook for NFLX Stock?
Overall, the Street has a Moderate Buy consensus rating on Netflix. Following a nearly 36% jump in the company’s share price over the past year, the average NFLX price target of $511.92 implies a further 5.4% potential upside in the stock. The announcement of the deal has pushed TKO shares nearly 22% higher so far today.
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