Nasdaq NFLX NetFlix

Investing in the S&P 500 via an exchange-traded fund (ETF) that tracks it is an excellent idea for long-term investors. The index has generally delivered solid returns. We have every reason to believe that will continue for a while.

Equities delivered another winning week, but it wasn’t without its challenges. The latest readings on consumer and producer inflation were slightly above expectations, which has changed expectations for future rate cuts, as the Federal Reserve will likely take a more measured app

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in AdaptHealth Corp (Symbol: AHCO), where a total volume of 54,043 contracts has been traded thus far today, a contract volume which is representative of approximat

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true poten

Netflix (NFLX) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Communication Services Select Sector SPDR Fund (Symbol: XLC) where we have detected an approximate $121.2 million dollar outflow -- that's a 0.7

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but

Below is Validea's guru fundamental report for NETFLIX INC (NFLX). Of the 22 guru strategies we follow, NFLX rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum

The S&P 500 Index ($SPX ) (SPY ) Tuesday closed up by +0.97%, the Dow Jones Industrials Index ($DOWI ) (DIA ) closed up by +0.30%, and the Nasdaq 100 Index ($IUXX ) (QQQ ) closed up by +1.55%. Stocks Tuesday settled moderately higher, with the Nasdaq 100 posting a...

It might seem strange to say a stock is still irresistible after it’s rallied 350% and just closed at a new high, but it’s hard not to with Netflix, Inc (NASDAQ: NFLX). For a company that had to watch its shares lose 80% of their value just 2 years ago, it’s been a remarkable tu

Below is Validea's guru fundamental report for NETFLIX INC (NFLX). Of the 22 guru strategies we follow, NFLX rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum

Tech behemoth Amazon.com (AMZN) is set to start offering rival Apple’s (AAPL) Apple TV+ on its Prime Video Streaming service in the U.S. later in October. Apple TV+ will be available as a premium, add-on subscription service costing $9.99 per month for Prime viewers. The deal will help both Amazon and Apple attract more viewers as well as increase the viewing time spent on their streaming offerings. Prime members will be able to subscribe and view the Apple TV+ shows directly on the Prime Video app and will not require any other app downloads or cable connection. Benefits of the Deal to Amazon and Apple Amazon wants to make Prime Video a one-stop streaming giant that offers nearly all online streaming choices to customers, so they don’t have to go to other streaming services. It hosts several other streaming services, including HBO Max, Discovery+, Showtime, MGM Studios, and Paramount+ (PARA) among roughly 100 add-on subscription options in the U.S. Amazon and Apple already have partnerships on a number of fronts, such as Amazon’s Fire TV family offering native Apple TV+ app. Amazon usually takes a cut from the subscription service revenue for services provided on Prime Video, but details of the same remain unknown. Meanwhile, Apple wants to increase the viewership of its Apple TV+ streams, which include some popular original series such as Ted Lasso, The Morning Show, and Severance. Apple TV+ also streams Major League Soccer and Major League Baseball sporting events, which will act as a big boost for Prime members to opt for the service. However, Apple TV+ stands far behind in the streaming race, lagging bigwigs such as Netflix (NFLX), Disney+ (DIS), and Amazon Prime Video. The iPhone maker has always tried to garner viewership with its in-house entertainment series and has even won several Emmy awards for its shows. Having said that, heated competition in the streaming space, rising package costs of different streaming services, and sticky inflation have impacted customer spending on streaming shows. Is Amazon a Good Stock to Buy Right Now? Wall Street is indeed highly optimistic about Amazon stock’s trajectory. On TipRanks, AMZN stock has a Strong Buy consensus rating based on 43 Buys versus two Hold ratings. The average Amazon.com price target of $222.95 implies 20.4% upside potential from current levels. Year-to-date, AMZN shares have gained 21.9%. See more AMZN analyst ratings Is AAPL Stock a Good Buy? Wall Street remains divided on the world’s largest trillion-dollar company, as demand for iPhones remains subdued in the U.S. and China. On TipRanks, AAPL stock has a Moderate Buy consensus rating based on 23 Buys, ten Holds, and one Sell rating. Also, the average Apple price target of $248.90 implies 8.4% upside potential from current levels. AAPL shares have gained 19.7% so far this year. See more AAPL analyst ratings Disclosure

In the latest trading session, Netflix (NFLX) closed at $727.43, marking a +0.79% move from the previous day. This change outpaced the S&P 500's 0.71% gain on the day. Elsewhere, the Dow saw an upswing of 1.03%, while the tech

Below is Validea's guru fundamental report for NETFLIX INC (NFLX). Of the 22 guru strategies we follow, NFLX rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum

Streaming giant Netflix (NFLX) is set to report its Q3 earnings on October 17th. While concerns about subscriber growth may be affecting Wall Street’s consensus on Netflix shares this quarter, the company is projecting double-digit revenue growth and an increase in margins as it moves toward advertising for monetization. Although option chains suggest that Q3 may be characterized by high volatility, I still view NFLX as a Buy ahead of its earnings report, particularly with a long-term investment horizon in mind, as its valuation remains de-risked compared to historical averages. Netflix’s Q2 Performance Recap In line with my bullish outlook on Netflix, the company provided strong reasons for long-term optimism in Q2. Netflix reported a 17% year-over-year revenue increase, reaching $9.55 billion, which surpassed estimates. This growth was fueled by successful titles such as  Baby Reindeer and  Bridgerton, alongside a 16% rise in average paid memberships, totaling 277.65 million. This was an increase of about 8 million subscribers, exceeding analyst expectations of five to six million new additions. While the market’s initial reaction to Q2 results was moderate due to high expectations, Netflix has consistently outperformed in key metrics such as operating margins and subscriber growth. In the latest quarter, the company achieved a 27.2% operating margin, up from 22.3% the previous year. Additionally, Netflix generated $3.35 billion in free cash flow for the first half of the year, putting it on track to meet its annual guidance of $6 billion. This was a positive development, especially as Netflix continues its substantial content investment while maintaining strong cash flow. Furthermore, Netflix raised its Fiscal Year 2024 revenue growth forecast to 15%, up from 14%. The company also increased its expected annual operating profit margin to 26%, up from the previous estimate of 25%. What to Expect from Netflix in Q3 For Q3, my Buy stance on Netflix remains strong, as the company is forecasting a revenue growth rate of 14% and an operating profit margin of 28.1%. This would mark a significant increase from the 22.4% margin in Q3 2023. The boost in margin is primarily driven by incremental subscriber growth and rising revenue, both of which have a positive impact on profitability. To exceed market estimates, Netflix will need to report earnings per share (EPS) above $5.09, implying a 36.5% year-over-year increase, and revenues above $9.765 billion, representing a 14.3% increase. Analysts, however, have mixed expectations for Q3, with 29 out of 31 analysts revising their EPS targets upward in the past three months. However, only 11 out of 32 analysts have raised their revenue projections for the quarter. Netflix Is a Growth Stock Again, but in a Different Way A key element supporting a bullish investment thesis for Netflix extends beyond merely beating Wall Street’s top and bottom-line estimates. I believe that the significant rebound in Netflix’s stock, which fell below $170 per share in mid-2022 after experiencing its first-ever failure to grow its subscriber base, signals that the market now views Netflix as a growth stock again, albeit in a different way than before. Subscriber growth remains a key metric that could influence the market’s reaction to Netflix’s Q3 results. However, as the business matures, I believe the company is shifting from the “growth in numbers” phase to a “monetization growth” phase, with advertising playing a significant role. By eliminating its basic plan, Netflix is nudging users toward its ad-tier option, which is a smart long-term strategy that expands potential ad revenue. Therefore, Netflix’s progress in advertising may be as crucial, if not more so, than subscriber growth in Q3. Expect Volatility after the Earnings Report Regardless of whether Netflix beats or misses expectations, its stock has historically exhibited significant volatility following its earnings reports, often driven by conflicting perceptions of the company as either a value or growth stock. This is evident from the volatile price reactions in most of the last 12 earnings reports. Still, I maintain a bullish long-term outlook, as short-term fluctuations in Q3 results are unlikely to affect long-term investors. One of the key contributors to volatility in Q3 could be valuation. Currently, Netflix trades at a forward price-to-earnings (P/E) ratio of 37.7x, the highest it has been since 2022. Although this indicates an increasing valuation, I still believe it remains relatively inexpensive compared to the stock’s five-year average P/E of 46.8x. In addition, given that EPS is projected to grow by 59% in 2024 and another 20% in 2025, Netflix could trade at a forward P/E ratio of 30.4x by then. While not a bargain, this presents a de-risked growth opportunity. What Option Chains Reveal About Netflix’s Q3 Earnings Expectations Although I believe Netflix is well-positioned to continue its growth trajectory in Q3, the option chains confirm the high probability of a volatile scenario ahead. There is an expected earnings move of 8.33% in either direction, based on the at-the-money straddle for options expiring on October 18th, the day after the earnings announcement. This estimate uses the $720 strike price, with call options priced at $31.25 and put options priced at $28.76. Is NFLX a Buy, According to Wall Street Analysts? Using TipRanks’ data, the Wall Street consensus for NFLX is a Moderate Buy. Out of the 37 analysts covering the stock, 10 have a Hold recommendation and two recommend selling. Meanwhile, the remaining analysts recommend a Buy. Furthermore, the average price target for NFLX is $720.16, indicating little to no upside potential. See more NFLX analyst ratings Conclusion In conclusion, I believe that despite the anticipated volatility, Netflix is well-positioned for continued growth in Q3. The shift toward advertising and a focus on monetization over subscriber growth could become evident this quarter and strengthen in the following ones. Although the stock is trading at all-time highs as the earnings date approaches, short-term volatility may lean bearish. Nevertheless, I believe that investors who buy NFLX stock, even at current valuations, will ultimately reap the rewards. Therefore, I consider Netflix a Buy ahead of earnings, and even more so if there is a pullback. Disclosure

As we approach the end of 2024, investors are closely scrutinizing Disney DIS and weighing their options. With its stock trading at a 2-year forward price-to-sales (P/S) multiple of 1.77, compared to the Zacks Media Conglomerates

Next week brings plenty of economic data, as well as earnings from several finance names and a handful of blue chips as earnings season gets underway. Bank of America (BAC), Charles Schwab (SCHW), Citigroup (C), Fifth Third (FITB), Goldman Sachs (GS), Johnson & Johnson (JNJ),

Selling the news is a common trading strategy in which traders buy a stock in anticipation of expected news, then sell once the event occurs. It’s a short-term strategy based on the psychology that the unknown is frequently better or worse than the known. Once traders have time

The S&P 500 Index ($SPX ) (SPY ) today is up by +0.76%, the Dow Jones Industrials Index ($DOWI ) (DIA ) is up by +0.07%, and the Nasdaq 100 Index ($IUXX ) (QQQ ) is up by +1.25%. Stocks today are moderately higher, with the Nasdaq 100 posting a...