Why Netflix Stock Is Gaining During Another Tough Session for the Market

Core Viewpoint - Netflix's stock is performing well despite broader market declines, driven by positive analyst coverage and strong financial results [1][2]. Financial Performance - In the first quarter, Netflix achieved 12.5% sales growth and exceeded earnings expectations, with a forecast of $8 billion in free cash flow for the year [2][4]. - For Q2, management anticipates sales growth to accelerate to approximately 15% and expects an operating income margin of about 33%, reflecting a 6 percentage point year-over-year improvement [4]. Analyst Sentiment - Investment firms such as Wedbush, Morgan Stanley, and JPMorgan have responded positively to Netflix's results, raising their price targets and viewing the stock as a growth opportunity that may perform well during a recession [3]. Annual Projections - For the full year, Netflix's midpoint revenue target is set at$ 44 billion, indicating a growth of roughly 13%, with an expected operating income margin of 29% [5]. - The company plans to utilize its strong profits for share buybacks and significant investments in content [5].