Shares of Netflix  (NFLX) – Get Report were higher Wednesday after the media-streaming major’s price target was raised to a Wall Street high $650 from $600 at Pivotal Research with a buy rating. 

The new target indicates 28% potential upside from the stock’s Tuesday closing price. The stock recently was 3.1% higher at $521.50. 

Netflix is in the middle of a “virtuous cycle” of subscribers paying for the company’s spending on new content, and that new content subsequently brings in more subscribers, Pivotal analyst Jeffrey Wlodarczak said in the note. 

This cycle should help Netflix “remain as the dominant subscription-video-on-demand player for the foreseeable future,” Wlodarczak said. 

Competition has increased as Comcast  (CMCSA) – Get Report launched the Peacock streaming network and, to a lesser extent, from HBO Max  (T) – Get Report and the return of sports, the analyst said. 

“As NFLX continues to gain scale and invest in ever more
compelling programming, we expect further material price increases, while also still
substantial increases in subscriber totals and eventually a rapid expansion in NFLX
profitability reaching an ultimate about 35% [earnings before interest, taxes, depreciation and amortization] margin by 2026,” Wlodarczak said. 

The note does warn that Netflix has $20 billion in content commitments made under self-produced content, with significant free-cash-flow losses, including a $2.5 billion projected free cash flow loss in 2020. 

In addition, other content companies, like Amazon  (AMZN) – Get Report and Apple  (AAPL) – Get Report, could get far more aggressive in their show offerings.

“In our view AMZN represents the largest competitive threat to NFLX, offset by
the reality that at AMZN/NFLX price points the two players can coexist,” the analyst said.

“Competition from ad-supported live-streaming players does not appear to be a

white-house.jpg
USATSI

A report from USA Today’s Tom Schad revealed the 10 sports owners who have donated the most to political campaigns during the 2019-20 political cycle. The analysis revealed that owners throughout the six major American sports leagues donated upwards of $14.6 million to various political interests.

The numbers themselves come from federal campaign finance records. About two-thirds of the total is connected to the following 10 owners, who have given between $375,000 and $3,25 million throughout the past 20 months.

Leading the list is Charles B. Johnson, owner of the San Francisco Giants, who donated over $3.25 million in federal contributions. USA Today found that pretty much all of the Johnson’s money went towards Republican candidates, donating the maximum individual amount of $5,600 to over two dozen candidates. He also donated $435,200 to a political action committee called “Trump Victory.” 

Next is Woody Johnson of the New York Jets, who donated a hair under $2 million towards exclusively Republican campaigns. Johnson is not only a high donor, but he’s also the current United States Ambassador to the United Kingdom. Dan DeVos, brother-in-law of Education Secretary Betsy DeVos and Orlando Magic owner, gave $1.2 million, with all but $10,000 going to Republican causes

Rounding out the top five is James Dolan, owner of the New York Knicks and New York Rangers, and U.S. Senator Kelly Loeffler, owner of the Atlanta Dream. Dolan threw heavy financial support behind Trump during the last election, and this cycle seems no different. Loeffler, a sitting U.S. Senator, has donated over $500,000, with all but $5,000 going to Republican causes, including to the campaigns of her colleagues in the Senate. The Georgia congresswoman came under fire from the WNBA and Dream players earlier this year for comments she made about the Black Lives Matter movement.