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Why Netflix Rose Over 6% Today

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Netflix

Netflix (NFLX) continues to outperform the broader market today. In the first three trading days of 2019, the company’s stock surged about 11.2%. As of January 4, it had risen 27.2% since December 24. Today at 11:57 AM ET, Netflix was trading with 6.4% gains for the day. In the week ended January 4, other tech stocks Apple (AAPL), Amazon (AMZN), Facebook (FB), Twitter (TWTR), Microsoft (MSFT), and Alphabet (GOOG) were down 5.1%, up 6.6%, up 3.6%, up 5.3%, up 1.5%, and up 3.0%, respectively. In comparison, Netflix was up 16.2% last week while Chinese company Tencent Music (TME) lost 1.5%.

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Netflix won five Golden Globes on January 6, which was enough to boost investors’ confidence in the company’s original and quality content. According to a CNBC report, “Netflix won more awards at Sunday’s show than any other network or streaming service with three wins on the TV side and two for film,”

Last week, Goldman Sachs expressed its positive views on Netflix and reiterated its price target of $400, CNBC reported. In a note, Goldman analyst Heath Terry said, “With Netflix shares down 36 percent since record highs in July, and the S&P 500 down 10 percent over the same period, we believe Netflix represents one of the best risk/reward propositions in the Internet sector.” The analyst also praised the online media provider’s “investment in content, technology, and distribution,” which he thinks should “drive subscriber growth well above consensus expectations” globally. This is one of the reasons why Netflix has outperformed the broader market and its peers lately.

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