On Thursday, Netflix Inc. shares rallied for three consecutive days amid a bullish stock market trend.
Netflix’s shares closed Wednesday session 2.96% higher at $461.94 and increased by 0.07% to $462.94 in after-hours trading. Despite being $23.06 below their 52-week peak on July 19th, the streaming giant’s shares experienced an upward trend.
Moreover, reports show the company’s market cap is $202.18 billion. While Netflix’s third-quarter data indicated a 4.03% revenue growth, showing a stable increase in its top-line performance.
Meanwhile, the California-based streaming platform is not the only media company making a positive note on the stock exchange. Industry rivals, including Apple, Walt Disney Co., and Comcast Corp, moved upward.
Apple increased by 0.30% to $188.01, and Comcast Corp rose by 1.58% to $42.53 at the closed trading session. While Walt Disney significantly climbed by 3.14% to $93.93 per share.
Despite Netflix’s significant surge in share prices, its trading volume was disclosed to be lower than average at 5 million shares exchanged. Investors may reassess their trust in the company’s prospects due to this development, impacting their overall perception of the situation.
The video-streaming platform and rivals’ recent success, fueled by stock market recovery, has boosted optimism in the financial sector. Also, many investors are eyeing opportunities to capitalize on potential growth.
However, regardless of optimism, the company’s below-average trading volume introduces market hesitation, highlighting mixed sentiment among investors.
BofA Accredits Netflix as a Tier-1 Investment Idea
Bank of America’s (BofA) research team adds Netflix and two others to its Tier-1 list of top investment ideas, highlighting strong potential.
According to BofA’s published investment note, Sealed Ari Corp and Vertiv Holdings Co joined the list besides the video-streaming platform.
Meanwhile, BofA clarified its requirements to be part of its Tier-1 list. A company must obtain an average daily trading volume of 5 million in the past six months.
Despite BofA’s optimistic view of Netflix, analysts disagree, tagging the company with a Sell rating due to overvaluation. Additionally, Netflix is still attractive, but doubts arise about its sustainable growth, with worries that its market share may be limited.