Soaring Netflix Stock Takes Spotlight After Earnings

Analysts and options traders have been quick to chime in

Deputy Editor
Oct 19, 2023 at 11:18 AM
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Netflix Inc's (NASDAQ:NFLX) blowout earnings report is in focus today, after the company announced better-than-expected third-quarter earnings of $3.73 per share on revenue of $8.54 billion. The crackdown on password sharing appears to have paid off, as the streaming name added nine million subscribers. Price hikes are coming as well, both to its ad-free streaming plan and lowest-priced version.

Morgan Stanley upgraded NFLX to "overweight" from "equal weight," seeing more than 20% upside. Keybanc  also upgraded the equity to "overweight," while Truist Securities upped its rating to "buy." Several other firms chimed in with price-target hikes, including J.P. Morgan Securities to $480 from $455, though Deustche Bank lowered its objective to $460 from $485. 

Naturally, options traders are getting in on the action as well. So far, 191,000 calls and 178,000 puts have been exchanged, or six times the options volume typically seen at this point. The October 400 and 410 calls are the most popular, with new positions opening at both. 

At last glance, NFLX was up 15.3% at $399.31, earlier as high as $408.95. Gapping above pressure at its descending 20-day moving average and rising from multi-month lows, the stock is now trading at its highest level since mid-September. Since the start of the year, the equity is up 35.4%. 

 

 

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