What happened

Shares of Netflix (NASDAQ:NFLX) climbed 5.7% on Wednesday, following bullish analyst comments.  

So what 

Pivotal Research analyst Jeffrey Wlodarczak reiterated his buy rating on Netflix's stock and boosted his price forecast from $600 to $650. His new target price represents potential gains for investors of roughly 22% from the stock's current price near $535.

A person is holding an upwardly sloping digital chart.

Analysts see strong returns ahead for Netflix's shareholders. Image source: Getty Images.

Wlodarczak expects Netflix to remain the dominant global streaming platform, despite intensifying competition from the likes of Disney (NYSE:DIS) and other new entrants. In addition, Wlodarczak says the coronavirus pandemic is accelerating the trend toward streaming and other forms of home-based entertainment.

Now what

Netflix is one of the businesses best positioned to thrive in the current COVID-filled world. More people are watching streaming video in the safety and comfort of their own homes than ever before, and viewership should only continue to rise as people ditch cable for less expensive entertainment options.

Disney is a formidable rival, one not to be taken lightly. Yet many consumers see Disney+ and its primarily kids-focused content as complementary to Netflix's broader slate of shows and movies.

Moreover, even when combined, the cost to subscribe to both Disney+ and Netflix is still significantly cheaper than most cable packages. Thus, Netflix and Disney are both likely to prosper within the booming global streaming market in the years ahead.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.