Why Netflix Stock Is Rising

Netflix Inc NFLX shares are trading higher Wednesday after the company reported better-than-expected earnings results and subscriber numbers.

Netflix said second-quarter revenue increased 8.6% year-over-year to $7.97 billion, which missed the estimate of $8.04 billion, according to data from Benzinga Pro. The streaming company reported quarterly earnings of $3.20 per share, which beat the estimate of $2.96 per share. 

Netflix previously guided for a loss of 2 million subscribers in the second quarter, but the company reported a loss of just under 1 million. Global streaming paid memberships totaled 220.67 million in the quarter, up 5.5% year-over-year.

Netflix said it expects paid net adds to increase by about 1 million in the third quarter. Third-quarter earnings are expected to reach $2.14 per share versus the estimate of $2.77 per share.

Related Link: Netflix Q2 Earnings Highlights: Stock Climbs On Subscriber Beat, Guidance, Ad-Supported Update

Analyst Assessment:

• Stifel analyst Scott Devitt upgraded Netflix from a Hold rating to Buy and raised the price target from $240 to $250.
• Piper Sandler analyst Thomas Champion maintained Netflix with a Neutral rating and raised the price target from $210 to $215.
• Credit Suisse analyst Douglas Mitchelson maintained Netflix with a Neutral rating and lowered the price target from $350 to $263.
• JP Morgan analyst Doug Anmuth maintained Netflix with a Neutral rating and raised the price target from $230 to $240.
• Macquarie analyst Tim Nollen maintained Netflix with an Underperform rating and raised the price target from $150 to $170.

NFLX Price Action: Netflix has a 52-week high of $700.98 and a 52-week low of $162.71.

The stock was up 6.07% at $213.86 at time of publication.

Photo: yousafbhutta from Pixabay.