Personal Finance

How Netflix Gained 21% So Far in 2017

Netflix logo on wall outside company headquarters.

What happened

Shares of Netflix (NASDAQ: NFLX) rose 20.7% in the first half of 2017, according to data from S&P Global Market Intelligence .

So what

The digital video veteran presented two quarterly reports in January and April, handily beating the Street's earnings targets in both reports. Netflix also found a back door into the elusive Chinese market , partnering with a video service from local hero Baidu (NASDAQ: BIDU) .

Netflix logo on wall outside company headquarters.

Image source: Netflix.

Now what

It wasn't all wine and roses for Netflix. Shares are trading more than 10% below the all-time highs that were set in early June, as analysts and investors suddenly turned a skeptical eye to the FANG group of high-growth internet stocks. Netflix is the "N" in that acronym, of course.

Netflix is gearing up for a second-quarter update on July 17, and that report could very well make the FANG skeptics look like the boy who cried "wolf." The company's strong slate of Netflix originals points to another Street-beating report. And don't forget that Netflix is stepping up its bottom-line earnings in a big way these days. Those lofty P/E ratios should start to look reasonable as the earnings side of that equation expands.

NFLX data by YCharts .

10 stocks we like even better than Netflix

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now...and Netflix wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of June 5, 2017.

Anders Bylund owns shares of Netflix. The Motley Fool owns shares of and recommends Baidu and Netflix. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


Latest Personal Finance Videos

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More