Shares of all four so-called “FANG” stocks—Facebook , Amazon (AMZN - Free Report) , Netflix (NFLX - Free Report) , and Alphabet (GOOGL - Free Report) —moved higher in morning trading Tuesday on the back of Netflix’s historic subscriber growth figures.
The video streaming behemoth released its fourth-quarter report on Monday afternoon, matching our consensus earnings estimate and tallying 33% growth in total revenues. But the real story for Netflix was its historic quarterly subscriber growth.
Netflix originally guided for 6.3 million new subscribers in the fourth quarter. The Silicon Valley media giant added 6.36 million new international memberships alone.
With its roughly 2 million domestic adds, the company gained 8.3 million new subscribers in the quarter, marking a 15% year-over-year jump and representing the best quarter in company history (also read: Netflix Soars On Historic Subscriber Growth).
On the back of Netflix’s incredible results, shares of the company—which were already trading near their all-time high in the buildup to the report—are up more than 10.5%. Tuesday’s gains added over $10 billion to the company’s total market capitalization, bringing Netflix’s valuation near $110 billion.
The reaction to the latest report from one of Wall Street’s hottest tech stocks seems to have inspired optimistic trading throughout the sector. Fellow FANG stocks Facebook and Amazon gained about 1.5% in morning hours, while Alphabet was up nearly 0.7%.
Meanwhile, the tech-heavy Nasdaq Composite surged about 0.6% higher on Tuesday morning. These gains outpaced more modest moves from the Dow and the S&P 500.
The bulk of the technology sector’s market-moving earnings reports have yet to be released. Netflix’s results are, of course, specific to its own business model, but the stock’s strong post-earnings momentum could signal that investors are willing to send tech companies even higher this report season.
Facebook, Amazon, and Alphabet are all scheduled to report next week. In the coming days, tech investors will be focused on earnings announcements from chip-making giants like Texas Instruments (TXN) and Intel (INTC) (also read: Upcoming Tech Earnings Reports to Watch: NFLX, TXN, INTC).
Want more analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Shares of all four so-called “FANG” stocks—Facebook , Amazon (AMZN - Free Report) , Netflix (NFLX - Free Report) , and Alphabet (GOOGL - Free Report) —moved higher in morning trading Tuesday on the back of Netflix’s historic subscriber growth figures.
The video streaming behemoth released its fourth-quarter report on Monday afternoon, matching our consensus earnings estimate and tallying 33% growth in total revenues. But the real story for Netflix was its historic quarterly subscriber growth.
Netflix originally guided for 6.3 million new subscribers in the fourth quarter. The Silicon Valley media giant added 6.36 million new international memberships alone.
With its roughly 2 million domestic adds, the company gained 8.3 million new subscribers in the quarter, marking a 15% year-over-year jump and representing the best quarter in company history (also read: Netflix Soars On Historic Subscriber Growth).
On the back of Netflix’s incredible results, shares of the company—which were already trading near their all-time high in the buildup to the report—are up more than 10.5%. Tuesday’s gains added over $10 billion to the company’s total market capitalization, bringing Netflix’s valuation near $110 billion.
The reaction to the latest report from one of Wall Street’s hottest tech stocks seems to have inspired optimistic trading throughout the sector. Fellow FANG stocks Facebook and Amazon gained about 1.5% in morning hours, while Alphabet was up nearly 0.7%.
Meanwhile, the tech-heavy Nasdaq Composite surged about 0.6% higher on Tuesday morning. These gains outpaced more modest moves from the Dow and the S&P 500.
The bulk of the technology sector’s market-moving earnings reports have yet to be released. Netflix’s results are, of course, specific to its own business model, but the stock’s strong post-earnings momentum could signal that investors are willing to send tech companies even higher this report season.
Facebook, Amazon, and Alphabet are all scheduled to report next week. In the coming days, tech investors will be focused on earnings announcements from chip-making giants like Texas Instruments (TXN) and Intel (INTC) (also read: Upcoming Tech Earnings Reports to Watch: NFLX, TXN, INTC).
Want more analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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