Benzinga | Jul 15, 2021 11:34AM EDT

What This Analyst Thinks About Netflix's Potential Gaming Expansion

Netflix Inc (NASDAQ:NFLX) may soon be entering the video gaming market after hiring former Electronic Arts Inc (NASDAQ:EA) and Facebook Inc (NASDAQ:FB) executive Mike Verdu as vice president of game development.

Although streaming video use has surged over the last year, gaming has outpaced it, LightShed Partners analyst Richard Greenfield said Thursday on CNBC's "Squawk Box."

"The growth and time spent on gaming has dwarfed the time spent on video," Greenfield told CNBC.

The transition into gaming is a natural extension for Netflix, he said, adding that it makes sense for the company to enter a market that is growing at such a rapid pace.

"Netflix already has your time and attention, this is a way to expand it," he said. Greenfield said he expects Netflix to enter the gaming market with mobile applications and then expand over time.

Greenfield has a Buy rating on Netflix and a price target of $630.

Related Link: Netflix Hires Former EA, Facebook Exec As It's Said To Plan Expansion To Video Games

NFLX Price Action: Netflix has traded as high as $593.28 and as low as $458.60 over a 52-week period.

At last check Thursday, the stock was down 0.81% at $543.54.

Photo by Tumisu from Pixabay.