Why Netflix And Google Are No House Of Cards
In a report published Friday, MND Partners' Tim Anderson noted that Netflix, Inc. (NASDAQ: NFLX) and Google Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) are leading the upside in the NASDAQ and that these stocks are no "House of Cards."
Netflix's shares rallied 18 percent on Thursday, after the company reported a 5 percent increase in subscriber growth and better than expected Q2 earnings. The company's shares are now up more than 93 percent since the start of Q2, and over 137 percent year-to-date.
Other impressive gainers included: Amazon.com, Inc. (NASDAQ: AMZN), which is up 3 percent, eBay Inc (NASDAQ: EBAY), which is up 3.4 percent, and Google, which has risen 3.5 percent.
The over 1.25 percent appreciation in the NASDAQ to 5163, which represent a fresh all-time high, was largely driven by the increase in share price of Netflix and other stocks with exposure to video streaming.
Pointing out that NASDAQ appreciated by 5.5 percent in the last five days, analyst Anderson mentioned that Netflix and Google had led the change.
Related Link: Doug Kass Pounds The Table On Netflix: Sell!
In the report, MND Partners noted that Google's shares had gained 12 percent in just six days, excluding the post earnings rally that took the stock above $640 to multi-year highs, a 24 percent change from July 8. The stock rallied 10 percent in after-hours trading after the company reported its Q2 earnings and revenues ahead of expectations.
However, sharp price movements in after-hours trading need to be considered carefully. A perfect example of this is the Thursday morning evaporation of the 8 percent gains seen by the shares of Intel Corporation (NASDAQ: INTC) on Wednesday, after the company reported robust results, the report added.
Anderson pointed out that both Netflix and Google have sound management teams that have "survived and thrived" through periods of adversity.
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|Jan 2017||Loop Capital||Maintains||Buy||Buy|
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