What happened

Shares of Netflix (NASDAQ:NFLX) surged on Wednesday, rising as much as 5.7%; the stock closed the trading day up 5.4%.

The stock's gain was likely primarily fueled by the market's overall rise on Wednesday, as some investors bet a divided Congress -- with Democrats gaining majority in the House of Representatives and Republicans maintaining control of the Senate -- would reduce the risk of potentially disruptive economic policy.

The Netflix logo outside company headquarters

Image source: Netflix.

So what

Capturing the momentum in the overall stock market, the S&P 500 rose 2.1% on Wednesday. The tech-heavy Nasdaq Composite saw an outsize gain of 2.6%. The market's gains on Wednesday helped Netflix and other megacap tech stocks like Amazon and Apple move higher as well; the latter two stocks finished Wednesday up 7% and 3%, respectively.

Now what

While it's often worth looking into what may be moving a stock up or down when the moves are large, investors should stay focused on the fundamentals -- especially when the move is attributable to factors unrelated to the underlying business.

Last month, Netflix added 7 million streaming members to its services, crushing analyst estimates for member growth. In addition, the company guided for an impressive 9.4 million net member additions in its fourth quarter.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.