Market Overview

Netflix Bandwagon Fully Loaded Ahead Of Q1 Earnings

Share:

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Netflix, Inc. (NASDAQ: NFLX) shares were trading higher by $22.00 (5 percent) at $476.57 in Monday's session. One of the catalysts for the rally is an upgrade from UBS from Neutral to Buy, while raising their price target all the way from $370 to $565.

This marks the second day in a row the issue has been upgraded by the Street. On Friday, Citigroup raised the issue from Neutral to Buy and raised its price target from $409 to $525. On Thursday, BMO Capital maintained its Market Perform rating but bumped its price target from $400 to $450.

Also on Friday, Netflix proposed a huge increase in the number of its authorized shares, "promising a stock split to sweeten the pot. In a proxy statement filed late Friday afternoon, the company proposed boosting authorized shares to 5 billion from 170 million."

As a result, Netflix has leaped from its April 8 close ($441.36) to nearly $480 over this period of time. That puts the issue within striking distance of its all-time high, which was made on February 26 ($486.50).

All of the activity is taking place just ahead of the results for Q1 earnings that will be announced after Wednesday's close.

 

Related Articles (NFLX)

View Comments and Join the Discussion!

Posted-In: Pre-market outlookTechnicals Intraday Update Movers Trading Ideas