Netflix (NASDAQ:NFLX), 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 (NASDAQ:WBD) 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.
S&P 500 (SNPINDEX:^GSPC) fell 0.95% to 6,817, while the Nasdaq Composite (NASDAQINDEX:^IXIC) slipped 1.02% to 22,517 as growth shares broadly cooled. Within entertainment, industry peers Walt Disney (NYSE:DIS) closed at $103.3 (-0.99%) and Warner Bros. Discovery finished at $28.2 (-1.05%), lagging Netflix’s modest gain.
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 (NASDAQ:PSKY) 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 (NYSE:JPM) 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.
Before you buy stock in Netflix, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Netflix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $523,599!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,118,640!*
Now, it’s worth noting Stock Advisor’s total average return is 951% — a market-crushing outperformance compared to 194% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.