Today’s Change
(0.44%) $0.42
Current Price
$97.52
Key Data Points
Market Cap
$410B
Day’s Range
$95.34 – $98.45
52wk Range
$75.01 – $134.12
Volume
2.5M
Avg Vol
52M
Gross Margin
48.59%
Netflix (NFLX +0.44%), global streaming TV and film platform, closed Tuesday at $97.7, up 0.63%. The stock’s move reflects continued enthusiasm following bullish analyst calls and optimism after Netflix walked away from a Warner Bros. Discovery (WBD 1.12%) deal. Investors are also watching whether advertising and organic growth can sustain recent gains.
Trading volume reached 55.9 million shares, coming in nearly 8.6% above its three-month average of 51.5 million shares. Netflix IPO’d in 2002 and has grown 81,562% since going public.
How the markets moved today
S&P 500 (^GSPC 0.94%) fell 0.95% to 6,817, while the Nasdaq Composite (^IXIC 1.02%) slipped 1.02% to 22,517 as growth shares broadly cooled. Within entertainment, industry peers Walt Disney (DIS 1.13%) closed at $103.3 (-0.99%) and Warner Bros. Discovery finished at $28.2 (-1.05%), lagging Netflix’s modest gain.
What this means for investors
Netflix stock bounced even among a sea of red in the markets today. A five-day rally has lifted the streaming service stock nearly 25%. That rally came after investors anticipated, and received confirmation, that Netflix was walking away from its proposal to acquire much of Warner Bros. Discovery.
The company received a $2.8 billion termination fee after Warner Bros. deemed the bid by Paramount Skydance (PSKY 6.63%) superior. Investors applauded the company’s fiscal discipline after Netflix chose not to raise it’s offer.
Today’s move higher was supported by a JPMorgan (JPM +1.00%) upgrade that boosted its price target to $120. Investors will now watch as Netflix focuses on its core business and puts the termination fee windfall to work.
Howard Smith has positions in Netflix and Walt Disney. The Motley Fool has positions in and recommends Netflix, Walt Disney, and Warner Bros. Discovery. The Motley Fool has a disclosure policy.
