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Netflix Stock Price Rose Past $600 Ahead of Q3 2021 Earnings


Posted: Tuesday, October 19th, 2021

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Netflix (NASDAQ:NFLX) releases its quarterly earnings today at 03:00 PM PST. The company is expected to report EPS of $2.56 on the quarter, +46.9% higher when compared to the same quarter a year ago.

Netflix needs no introduction anymore as its brand has gained global recognition. This is a tech company listed on Nasdaq, and it quickly became a leader in the movies and entertainment industry.

The COVID-19 pandemic boded well for Netflix as people were forced to spend more time indoors due to extensive lockdowns in many parts of the world. Thus, they consumed online products and services and the online streaming services companies such as Netflix saw their revenues increasing significantly.

For the third quarter of 2021, investors expect the company to report EPS of $2.56, up +46.9% YoY. As for the annual revenue estimates, the company is expected to report $29.66 billion in the fiscal year ending December 2021 and $34.02 billion a year later.

Netflix stock price

What Do Analysts Say About Netflix Stock Price?

Netflix stock price is up a little over +15% YTD and not everyone is bullish. Out of the 96 analysts covering Netflix, 70 have buy ratings and 11 have sell ratings; 15 have neutral ratings.

Netflix

Atlantic Equities has maintained its buy rating and has the biggest target for the Netflix stock price: $780. Most recently, Piper Sandler has also maintained its buy rating with a price target of $705.

The company operates with a gross profit margin of 42.29%, lower than the 51.30% sector median. The stock price currently trades at a P/E GAAP (TTM) of 65.10, much higher than the 20.36 sector median.

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