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Netflix price target increases, Affirm-Amazon Pay deal: Trending tickers

JPMorgan and Wells Fargo raised their price targets on Netflix's stock and Amazon Pay adds Affirm's buy now, pay later service. Yahoo Finance Live breaks down how shares are reacting.

Video transcript

SEANA SMITH: Netflix closing the day in the green by just a bit up just about a tenth of a following some upgrades here from the Street. JPMorgan raising its price target on the stock to 470 bucks a share from 380. The analysts there saying that the streamer's paid sharing program is going to boost revenue over the next few years. Wells Fargo also raising their target to $500 from $400.

Akiko, when it comes to the JPMorgan note, they were very bullish just on those 100 million borrowers globally that Netflix estimates that they have. JPMorgan thinks that they're going to be able to convert 14 million of them into paid subscribers by the end of the year.

AKIKO FUJITA: Yeah, in part of the note also looks at some of these markets that they were testing this, and saying that there was less churn than expected, right? That was kind of the concern about, especially with paid sharing here, how many would actually opt out of that?

Now, given what they saw in those four markets, JP Morgan saying essentially, they think there will be less of a recovery time when you compare it to some of those other markets as well. So these revenue drivers certainly what has been behind those bullish notes on Netflix. And the fact that users are still sticking around probably certainly a positive sign.

SEANA SMITH: Yeah, certainly, would be a positive sign for the bottom line.

AKIKO FUJITA: Affirm shares higher today on news Amazon will let US retailers that already use Amazon Pay to offer Affirm's buy now, pay later services. Amazon customers have already had access to Affirm, but adding the adaptive checkout service to Amazon Pay allows for easier access to the pay later feature. And we saw a big move for Affirm on the back of that.

For those who aren't necessarily familiar with Amazon Pay, essentially allows you to use it on third-party platforms with all the information already stored on Amazon. And that's on Amazon and that could certainly be a big boost for Affirm

You know, some would argue that they have started to lose ground here a bit since Apple got into the buy now, pay later space.

SEANA SMITH: Yeah. That has been a huge concern for Affirm for some of the other competitors within the space out there. In terms of what this means for Amazon, Truist was out with a buy rating on this stock here.

And also when it comes to Affirm, they're saying that this is a quote, "digital wallet shot in the arm." Talking about now it's going to give Affirm a little bit of an edge when you compare it to some of those competitors out there, given the fact that Apple has entered the space. Certainly, has been a massive concern for many of the other buy now, pay later offerings out there on the Street.