Shares of streaming-TV giant Netflix (NASDAQ:NFLX) moved higher on Friday, rising as much as 6.3%. As of 1:26 p.m. EDT, shares were up 5.3%.
The stock's rise comes amid a positive day for the market overall, especially for many tech stocks. But bullishness toward Netflix stock on Friday is also likely fueled by a note from a Citigroup analyst who says the stock's recent decline is a buying opportunity for investors.
A sell-off in the market recently -- primarily driven by a sharp decline on Oct. 10 -- hit tech stocks particularly hard. The S&P 500 fell about 7% between Oct. 1 and Oct. 11, while the tech-heavy Nasdaq Composite was down about 9%. But even this understates how hard Netflix was hit. High-growth tech stocks like Netflix were slammed, with shares of the streaming-TV company declining 16% between Oct. 1 and Oct. 11. Netflix's move higher on Friday, therefore, is in line with an overall rebound in tech stocks after they saw outsize losses.
But Netflix's gain on Friday is also helped by Citigroup analysts' decision to upgrade the stock from a buy to a hold. "We view the recent sell-off as an opportunity to own a high-quality, recurring revenue franchise with attractive upside potential," said Citigroup analysts on Friday (via CNBC).
Investors will get a window into how Netflix is doing next week. The company is scheduled to report its third-quarter results on Tuesday, Oct. 16. Management expects to report 34% year-over-year revenue growth and add 5 million streaming members.