Netflix shares fell 1% on Monday before the release of the video streaming service quarterly report, as investors stated that it and other leading stocks are expected to boost the stock market in the next few weeks.
According to Thomson Reuters data, options trading activity suggests that traders expect Netflix to rise or fall by at least 9% before Friday.
Netflix has soared 35% since its last quarterly report on January 22, becoming one of Wall Street's best performing stocks, as the S&P 500 has entered corrections and investors are worried that the nine-year bull market may end.
Netflix's March quarterly report after Monday's close will be the first in the so-called FANG stock, which also includes Facebook Inc, Google's parent Alphabet and Amazon.com Inc, which have driven the stock market higher in recent years.
Investors will track Netflix's stock's response to the expansion of the transaction, looking for clues to the market's willingness to push up valuations.
According to the statistics of Thomson Reuters I / B / E / S, Netflix's stock price favored by investors is expected to be 100 times earnings, which is lower than the 117-fold price-earnings ratio in January, but far higher than the earnings multiple of 16 times that of the S & P 500 index. .
Investors who are popular with young people in the Robinhood stock trading application purchased Netflix shares 7% higher than Netflix's report. In contrast, Netflix last reported a buy/sell ratio of 20%, Robinhood said in an e-mail.
B. Riley FBR analyst Barton Crockett wrote in a report to clients that the number of global search for Netflix in the first quarter increased by 32% year-on-year, slightly higher than the previous quarter by 26%, indicating steady growth but not large Upside space. .
Netflix said in January that it expects to add 6.35 million streaming media customers in the first quarter, with original content including "unfamiliar things" and "splendidity."
"We believe that management's impact on content and marketing investment, management of emerging and recent localization markets, and management comments on long-term cash flow potential will be the key to continued investment themes," said Guggenheim analyst Michael Morris in preview Wrote.
According to Thomson Reuters data, analysts expect average quarterly revenue to increase by 40% to $3.69 billion. According to analyst averages, adjusted non-GAAP net income is expected to increase by 60.5% to $286 million, or 64 cents per share.
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