Netflix Stock Gained 21.4% Last Month. Here's How.

Source The Motley Fool

Shares of Netflix (NASDAQ: NFLX) rose 21.4% in April, according to data from S&P Global Market Intelligence. You might expect the company's impressive earnings report to provide fuel for these fires. It sure didn't hurt the stock that the first-quarter numbers were strong, but the report barely moved Netflix's stock price at all. Instead, investors pushed shares higher on the basis of rumors, leaks, and lofty expectations.

Netflix's stock went wild before earnings (and then kept going)

Heading into the earnings report, The Wall Street Journal got hold of some internal Netflix memos that supposedly outlined the company's long-term goals. According to the notes, management aims to double its annual revenue and triple its operating income over the next five years.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

As a result, the stock could also double and qualify Netflix for the ultra-exclusive club of trillion-dollar market caps. This scoop boosted its stock price by 4.8% in a single day.

Then it was time for the first-quarter earnings report. Netflix collected revenue of $10.5 billion, slightly above management's guidance and analysts' consensus estimates.

On the bottom line, the earnings number of $6.61 per diluted share left guidance and estimates far behind, representing a 25% year-over-year jump. But management didn't change its full-year guidance, and the stock didn't really move on the news.

However, Netflix had set the tone for a bullish investor mood. Several analysts issued optimistic reports on the stock, and the price gains started to appear. One week later, its price had gained another 12.7% while the S&P 500 (SNPINDEX: ^GSPC) market index only rose by 3.8%.

Several people around the TV couch, cheering what they see on the screen.

Image source: Getty Images.

Can Netflix keep the bullish momentum going?

The media-streaming pioneer is firing on all cylinders nowadays. It's a sharp shift from the meandering subscriber growth and plunging stock chart of 2022. Whether Netflix can join the trillion-dollar market-cap club by 2030 or not, the company looks ready for another dramatically different chapter.

This time, the potential growth drivers include a low-priced subscription plan in a shaky economy, lots of live sports and other livestreaming events, and a fantastic slate of popular multi-season shows. Netflix's video games aren't making a difference yet, and only time will tell whether the company will benefit from using artificial intelligence tools on the content production side, but that's OK. The gaming idea shouldn't be rushed, and there are plenty of bullish signs in the air anyway.

Should you invest $1,000 in Netflix right now?

Before you buy stock in Netflix, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Netflix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $611,589!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $697,613!*

Now, it’s worth noting Stock Advisor’s total average return is 894% — a market-crushing outperformance compared to 163% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of May 5, 2025

Anders Bylund has positions in Netflix. The Motley Fool has positions in and recommends Netflix. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Pound Sterling performs strongly even as BoE dovish bets remain firmThe Pound Sterling (GBP) trades firmly against its major peers, except the Japanese Yen (JPY), on Tuesday.
Author  FXStreet
10 hours ago
The Pound Sterling (GBP) trades firmly against its major peers, except the Japanese Yen (JPY), on Tuesday.
placeholder
Crypto Analyst Calls Wave 5 To Send XRP Price Above $6With the XRP price struggling to break out of consolidation, there is still a lot left for the altcoin to do before a definite uptrend can be registered.
Author  NewsBTC
10 hours ago
With the XRP price struggling to break out of consolidation, there is still a lot left for the altcoin to do before a definite uptrend can be registered.
placeholder
Gold touches two-week high as safe-haven demand persistsGold (XAU/USD) sprints higher on Tuesday for a second consecutive day, as geopolitical tensions around the globe continue to support investors’ demand for safe-haven assets.
Author  FXStreet
11 hours ago
Gold (XAU/USD) sprints higher on Tuesday for a second consecutive day, as geopolitical tensions around the globe continue to support investors’ demand for safe-haven assets.
placeholder
USD/CAD Price Forecast: Falls toward 1.3800 after retreating from levels near nine-day EMAThe USD/CAD pair is retracing its recent gains from the previous session, trading around 1.3820 during the European hours on Tuesday. The daily chart's technical analysis suggested a sustained bearish sentiment, as the pair continues to trade within a descending channel pattern.
Author  FXStreet
11 hours ago
The USD/CAD pair is retracing its recent gains from the previous session, trading around 1.3820 during the European hours on Tuesday. The daily chart's technical analysis suggested a sustained bearish sentiment, as the pair continues to trade within a descending channel pattern.
placeholder
Florida drops Strategic Bitcoin Reserve plans as bills are withdrawn indefinitely The US state of Florida has indefinitely postponed and withdrawn two crypto bills to form the Strategic Bitcoin Reserve from consideration. The two bills, House Bill 487 (HB 487) and Senate Bill 550 (SB 550), which aim to allocate up to 10% of public funds to BTC, were closed on Saturday.
Author  FXStreet
11 hours ago
The US state of Florida has indefinitely postponed and withdrawn two crypto bills to form the Strategic Bitcoin Reserve from consideration. The two bills, House Bill 487 (HB 487) and Senate Bill 550 (SB 550), which aim to allocate up to 10% of public funds to BTC, were closed on Saturday.
goTop
quote