Netflix Stock Hit with Pre-Earnings Bull Note

TD Cowen raised its price target to $775 from $725

TD Cowen raised its price target on Netflix Inc (NASDAQ:NFLX) to $775 from $725 today, ahead of the streaming giant’s second-quarter report, due out after the close on July 18. The firm also reiterated its “buy” rating and increased its long-term subscriber estimates, pointing to continued growth expectations. At last glance, NFLX was up 0.4% at $688.66, near its recent July 5 two-year peak of $697.49. 

The equity could see pressure from the $700 region, as last week’s highs, as well as its November 17, 2021 record peak of $700.98, were cut short there. Since October, Netflix stock only notched one monthly loss — in April. Year to date, the Big Tech name is up 41.5%. 

NFLX has a history of outsized post-earnings moves, averaging a 9.5% move, regardless of direction, over the past two years. The options pits are pricing in a 10.7% next-day swing this time around, so prepare for potential volatility next week. Netflix stock has had five positive reactions following its last eight quarterly reports, including a 16.1% pop this past October. 

 

 

 

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