Netflix Sparks Investor Interest with Strong Gains

In today's market, streaming giant Netflix (NFLX) stands out as one of the leading stocks to watch, particularly following an impressive 84% increase in 2024. This remarkable growth has led to a bullish add-on entry point, making the stock a key player in investment conversations right now.

Recently, Netflix has announced promising viewership statistics, highlighting its successful broadcasting of Christmas Day NFL games and a Beyoncé halftime show. According to Nielsen, these two NFL games attracted nearly 65 million viewers across the United States.

Solid Earnings Report

On October 17, Netflix reported earnings of $5.40 per share, driven by sales amounting to $9.83 billion for the September quarter. Analysts, who had predicted earnings of $5.12 per share and sales of $9.77 billion, were impressed by this performance. Year over year, Netflix's earnings increased by 45%, while its sales saw a 15% rise.

The company also welcomed 5.1 million new subscribers during the third quarter, surpassing expectations of 4 million. This growth brings Netflix's total worldwide subscriber count to 282.7 million, marking a 14% increase from the previous year.

Looking forward, Wall Street analysts anticipate that Netflix's earnings will grow by 65% for the full year, with a projected increase of 20% in 2025, according to IBD MarketSurge data.

Netflix Stock Shows Potential for Further Growth

After reaching an all-time high of 941.75 on December 11, Netflix stock has demonstrated tight trading patterns over the past three weeks. This consolidation has formed a three-weeks-tight add-on buy trigger at 941.75, signaling further potential for growth.

Another positive indicator is the relative strength line, which is just off recent highs. This suggests that Netflix is outperforming the S&P 500 and reinforces its position as a market leader.

However, it is important to note that Netflix is in a late stage of its long-term advance, having formed a fourth-stage base, as identified by IBD MarketSurge pattern recognition. Generally, earlier-stage bases have a higher likelihood of producing larger gains.

According to IBD Stock Checkup, Netflix boasts a perfect IBD Composite Rating of 99, further solidifying its place as an attractive option for investors' watchlists.

Other Promising Stocks to Consider

Several other stocks also warrant attention for research. Here are some notable mentions:

Company	Symbol	Buy Point	Type of Base
Shift4	(FOUR)	101.00	10-week Support
Arista Networks	(ANET)	116.94	Three-weeks-tight
Taiwan Semiconductor	(TSM)	205.63	Cup with Handle

In conclusion, Netflix's strong performance alongside positive industry trends make it a noteworthy choice for investors looking to enhance their portfolios.

Netflix, Stocks, Earnings