Why Netflix Inc. (NFLX) Is Gaining On Earnings Optimism Now

Insider Monkey
01-24

We recently compiled a list of the 5 Stocks Gaining On Earnings Optimism. In this article, we are going to take a look at where Netflix Inc. (NASDAQ:NFLX) stands against the other stocks.

The earnings season continues to move stocks higher as big names deliver their quarterly performance reports one by one. As a result, analysts are updating their models with the latest numbers, resulting in rating changes for these companies.

As the US indices struggle to find a specific direction in today’s trading, some stocks are clearly on an upward trajectory. We unearthed these stocks by looking at the recent earning reports, analyst upgrades, and the earnings calendar. To come up with the list of 5 stocks gaining on analyst expectations, we only considered stocks with a market cap of at least $75 billion.

A home theater with family members enjoying streaming content together.

Netflix Inc. (NASDAQ:NFLX)

Netflix is a streaming giant offering movies, TV series, games, and other services. It recently hit an all-time high of $999 right after the Q4 financial results were released. Earnings were higher than estimates and the company increased its revenue expectations by $500 million for 2025.

After its strong Q4 performance, JP Morgan maintained an Overweight rating and raised its target price to $1,150. The research firm expects a healthy double-digit growth in the next two years.

NFLX is starting this year in a strong form due to extremely engaging content, increasing prices in key markets like the US, and growing its ad business. Bank of America, Barclays, and other analysts also showed similar optimism about the company which isn’t surprising as the beloved stock of many continues to scale new heights.

Overall NFLX ranks 2nd on our list of the stocks that are gaining on earnings optimism. While we acknowledge the potential of NFLX as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NFLX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article was originally published at Insider Monkey.

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