How Netflix Gained 21% So Far in 2017

Markets Motley Fool

What happened

Continue Reading Below

Shares of Netflix (NASDAQ: NFLX) rose 20.7% in the first half of 2017, according to data from S&P Global Market Intelligence.

So what

The digital video veteran presented two quarterly reports in January and April, handily beating the Street's earnings targets in both reports. Netflix also found a back door into the elusive Chinese market, partnering with a video service from local hero Baidu (NASDAQ: BIDU).

Now what

It wasn't all wine and roses for Netflix. Shares are trading more than 10% below the all-time highs that were set in early June, as analysts and investors suddenly turned a skeptical eye to the FANG group of high-growth internet stocks. Netflix is the "N" in that acronym, of course.

Continue Reading Below

Netflix is gearing up for a second-quarter update on July 17, and that report could very well make the FANG skeptics look like the boy who cried "wolf." The company's strong slate of Netflix originals points to another Street-beating report. And don't forget that Netflix is stepping up its bottom-line earnings in a big way these days. Those lofty P/E ratios should start to look reasonable as the earnings side of that equation expands.

10 stocks we like even better than Netflix
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now...and Netflix wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of June 5, 2017.

Anders Bylund owns shares of Netflix. The Motley Fool owns shares of and recommends Baidu and Netflix. The Motley Fool has a disclosure policy.