NASDAQ: NFLX
Key Data Points
Netflix (NFLX 1.43%), global streaming TV and film platform, closed Tuesday at $97.7, up 0.63%. The stock’s move reflects continued enthusiasm following bullish analyst calls and optimism after Netflix walked away from a Warner Bros. Discovery (WBD +0.20%) deal. Investors are also watching whether advertising and organic growth can sustain recent gains.
Trading volume reached 55.9 million shares, coming in nearly 8.6% above its three-month average of 51.5 million shares. Netflix IPO'd in 2002 and has grown 81,562% since going public.
How the markets moved today
S&P 500 (^GSPC 0.21%) fell 0.95% to 6,817, while the Nasdaq Composite (^IXIC +0.07%) slipped 1.02% to 22,517 as growth shares broadly cooled. Within entertainment, industry peers Walt Disney (DIS 0.42%) closed at $103.3 (-0.99%) and Warner Bros. Discovery finished at $28.2 (-1.05%), lagging Netflix’s modest gain.
What this means for investors
Netflix stock bounced even among a sea of red in the markets today. A five-day rally has lifted the streaming service stock nearly 25%. That rally came after investors anticipated, and received confirmation, that Netflix was walking away from its proposal to acquire much of Warner Bros. Discovery.
The company received a $2.8 billion termination fee after Warner Bros. deemed the bid by Paramount Skydance (PSKY 7.73%) superior. Investors applauded the company’s fiscal discipline after Netflix chose not to raise it’s offer.
Today’s move higher was supported by a JPMorgan (JPM 0.26%) upgrade that boosted its price target to $120. Investors will now watch as Netflix focuses on its core business and puts the termination fee windfall to work.
