Benzinga - by Zaheer Anwari, Benzinga Contributor.
- Netflix experienced a significant 8% drop in its stock price following its Q1 earnings, yet the stock has shown resilience and is rebounding.
- After stabilizing around $550, Netflix's stock has begun its recovery suggesting potential for further growth.
Even though the stock price fell initially, Netflix actually did better than expected, with earnings per share of $5.28 beating the estimate of $4.52. It's quite common for stock prices to unpredictably swing up or down after earnings reports.
In Netflix's case, the drop was surprising given the positive earnings report, highlighting how financial markets can react in unexpected ways. Nevertheless, the strong earnings are starting to have an effect.
Netflix's stock stabilized and began to recover. It found solid support around the $550 level, which helped the stock start to climb back up towards $600, making up for the post-earnings dip.
As of early May, the stock has bounced back, showing an 8% increase from its recent low, and is now up 21% year-to-date. Looking ahead, Netflix’s stock appears ready for more growth.
The all-time high of $700 in November 2021 is an important marker. Even though this peak hasn’t been exceeded yet, the current upward trend hints that the stock is slowly moving towards this level again.
If the stock can break through this high, it could lead to consistent new record highs, showing that investors are again confident about the company's value and growth potential.
After the closing bell on Friday, May 3, the stock closed at $579.34, trading up by 2.47%.
This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.
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