Why Netflix Stock Zoomed Almost 6% Higher Today
What happened
Netflix (NASDAQ: NFLX) is on the cusp of releasing its latest set of quarterly earnings, and analysts were upping their price targets in anticipation of a good show. On the back of two such hikes on Tuesday, investors pushed the entertainment stock's value up by 5.5%, crushing the S&P 500 index's 0.7% increase.
So what
The two raising parties were Jefferies's Andrew Uerkwitz and Matthew Harrigan of Benchmark, both of whom added considerably to their respective levels. For Uerkwitz, Netflix is now worth $520 per share rather than the $440 of his preceding estimation. He reiterated his buy recommendation on the stock.
Harrigan's new price target on the shares is $293 apiece. Previously, it stood at $250. This doesn't mean he's about to binge on the video streamer, however, as he maintained his sell recommendation.
It's not unusual for analysts to adjust their takes on companies in the immediate run-up to earnings releases. Yet there has been quite a bit of movement with Netflix in this frame. Yesterday, heavyweight bank Wells Fargo weighed in on the company. Analyst Steven Cahall said his company is a buyer on the stock's weakness, and reiterated his overweight (buy, in other words) recommendation and $500 per-share price target.
Now what
Netflix's quarterly-earnings releases are closely watched and at times microscopically scrutinized. The company is, understandably, seen as a bellwether for the broader streaming industry if not the entertainment sector as a whole. This release will be of particular interest given the writer and actor strikes currently putting the industry on pause.
Netflix management will hold an "interview" about its second quarter after market hours on Wednesday.
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Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix. The Motley Fool has a disclosure policy.
