Netflix is the IBD Stock Of The Day as the subscription streaming video leader hovers in the buy zone of its post-earnings breakout.
On Jan. 22, Netflix stock broke out of a flat base at a buy point of 941.75, according to IBD MarketSurge charts. It spiked to a record high of 999 before pulling back into the 5% buy zone of its breakout. That buy zone extends to 988.84, based on IBD trading principles.
On the stock market today, Netflix stock gained a fraction to close at 978.94. Stocks responded negatively to President Trump's new tariffs on imports from Canada, China and Mexico.
Netflix's breakout occurred after the internet television network crushed Wall Street's targets for new subscribers in the fourth quarter. It also topped revenue and earnings estimates for the December quarter and guided slightly above views for sales in the March quarter.
Analysts polled by FactSet now expect Netflix to earn $5.75 a share on sales of $10.5 billion in the first quarter. That would translate to year-over-year growth of 9% in earnings and 12% in revenue.
Netflix Stock Ranks First In Group
On Thursday, Netflix detailed its content slate for 2025, including new movies, new TV shows and returning favorites, and video games.
Upcoming movies include director Guillermo del Toro's "Frankenstein"; "RIP," a crime thriller starring Ben Affleck and Matt Damon; and "Wake Up Dead Man: A Knives Out Mystery," starring Daniel Craig.
Returning TV series include "Wednesday" and the finales of "Stranger Things" and "Squid Games."
Netflix stock is on four IBD lists: Leaderboard, SwingTrader, Big Cap 20 and Stock Spotlight.
Netflix ranks first out of 20 stocks in IBD's Leisure-Movies & Related industry group, according to IBD Stock Checkup. It has a best-possible IBD Composite Rating of 99.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
