Netflix Stock Jumps After Strong Earnings
Analysts Raise Price Targets
Netflix shares soared on Wednesday after the streaming giant reported its best quarter of growth since viewers were stuck at home in the early days of the pandemic. The company added 7.7 million new subscribers in the first three months of the year, well above the 6 million analysts had expected. Revenue also beat expectations, coming in at $7.86 billion. The strong results sent Netflix shares up more than 10% in after-hours trading.
Analysts Raise Price Targets
Following the strong earnings report, several analysts raised their price targets for Netflix. JPMorgan raised its target from $575 to $630, while Wells Fargo raised its target from $550 to $600. Both analysts cited the company's strong growth prospects as a reason for their optimism.
Recent Pullback
Despite the strong earnings report, Netflix shares have fallen in recent days. The stock closed down more than 3% on Wednesday, after CFO Spencer Neumann said that the company expects growth to slow in the second half of the year. Analysts say the pullback is likely a temporary reaction to Neumann's comments, and that Netflix remains a long-term growth story.
Conclusion
Netflix has had a remarkable run in recent years, and the company's latest earnings report shows that its growth is still going strong. While the stock may have pulled back in recent days, analysts remain bullish on Netflix's long-term prospects. Investors who are looking for a growth stock with a strong track record of execution should consider adding Netflix to their portfolios.
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