What’s in Store for NFLX Stock?
Netflix, Inc. (NASDAQ:NFLX) was up 2.23% by late morning trading on Friday, as analysts project a strong fourth-quarter earnings report to release next week. Expect NFLX stock to see either a boost or slide as the Q4 report will be released after closing on January 18.
NFLX stock has had a pretty good run in 2017 so far. Besides rising by about 6.5% since the year began, the Golden Globes saw Netflix’s new hit show The Crown take home a couple of the awards in two very desirable categories: “Best TV Series Drama” and “Best Performance by an Actress in a TV Series” (for Claire Foy). This is part of NFLX stock’s strategy is to become prestige TV, much like HBO, by building up a large stable of “can’t miss” television shows that become cultural phenomenons. (Source: “Netflix Added To Stock Buy Lists Ahead Of Q4 Earnings Report,” Investors Business Daily, January 11, 2017.)
Some series have hit it big in the past (House of Cards, Stranger Things, and Orange is the New Black) while others have faltered (Marco Polo) but, due to the company’s aversion to using advertisements on its site, it’s absolutely critical that Netflix continues to pump out quality programs in order to encourage more subscriptions and compete with other streaming services.
Gone are the days when Netflix was really the only choice for those looking to cut the cable cord. Now with Amazon.com, Inc. (NASDAQ:AMZN) and a whole bevy of other options for streaming, NFLX stock relies on creating buzz products that will force viewers to pay for its specific streaming service versus its competitors.
Next week, of course, will be a big indicator if things are moving in the right direction for the company. For investors hoping to see a strong start for NFLX stock in 2017, the fourth-quarter earnings report will more than likely result in a big swing upward if the company ends up outperforming estimates.
Which is to say that if you’re bullish on Netflix, January 18 is a day well worth watching.