Netflix (NFLX) Outperforms Stock Market, Jumps 7%: Here’s Why
It has been a troublesome few weeks for the US stock market. As fears of an impending recession strengthen and concerns of a trade war grow, Wall Street has paid the price. However, a surprising benefit emerged as Netflix (NFLX) outperformed the stock market, jumping 7% on Tuesday in an impressive performance.
IT certainly wasn’t alone, as the Magnificent 7 saw their share prices increase over the course of the day. The Dow Jones Average was able to jump, but it certainly didn’t undo this 1,200-point loss from Monday. Subsequently, the biggest question is why the streaming giant was among the biggest winners of the market’s slight return to form on Tuesday.
Also Read: Netflix (NFLX) Stock: Three Reasons Why You Should Invest
Netflix Jumps as Much as 7% in Major Increase: But Why Are Investors Buying In?
It has been an interesting year so far for Netflix stock prices. Entering 2025, there was a prevailing belief that the company was on pace to become the first media firm to enter the $1 trillion market cap club. Moreover, it leaped this week, riding a 12% increase over the past seven days to trade at a $1,047 price.
That has led many to ponder why the streaming shares have been so successful, with Wall Street underperforming as a whole. Indeed, as Netflix (NFLX) jumped as much as 7% on Tuesday, outperforming the market, all eyes were on why investors were buying in as much as they were.
Also Read: Netflix (NFLX) Stock Price Prediction: Wall Street Gains New Bull
Interestingly, the answer seems to lie in the stability of the company. Even though it is entertainment, it has proven to be a stable play amid increased volatility. The aforementioned recession and tariff war fears have left increased volatility. To this point, with some of the biggest shares available, uncertainty has been the name of the game.
Its outperformance has been a trend for much of the year. The S&P 500 and Nasdaq are both down 10% and 15% on the year. However, Netflix is up more than 19% year-to-date. A big reason for its increased interest has been impressive Q1 earnings. The company posted $3 billion in profit with a 31.7% operating margin and $10.5 billion in revenue.
Subsequently, analyst William Blair noted that its surging value is connected to its safety. Indeed, the stock is “currently not experiencing economic headwinds with stable retention,” he noted. “Netflix is relatively more insulated from the recent market turmoil because it is not overly exposed to tariffs and will be relatively resilient in any potential future economic downturn,” analysts Ralph Schackart and Jack Brenczewski added.
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Netflix (NFLX) Outperforms Stock Market, Jumps 7%: Here’s Why
It has been a troublesome few weeks for the US stock market. As fears of an impending recession strengthen and concerns of a trade war grow, Wall Street has paid the price. However, a surprising benefit emerged as Netflix (NFLX) outperformed the stock market, jumping 7% on Tuesday in an impressive performance.
IT certainly wasn’t alone, as the Magnificent 7 saw their share prices increase over the course of the day. The Dow Jones Average was able to jump, but it certainly didn’t undo this 1,200-point loss from Monday. Subsequently, the biggest question is why the streaming giant was among the biggest winners of the market’s slight return to form on Tuesday.
Also Read: Netflix (NFLX) Stock: Three Reasons Why You Should Invest
Netflix Jumps as Much as 7% in Major Increase: But Why Are Investors Buying In?
It has been an interesting year so far for Netflix stock prices. Entering 2025, there was a prevailing belief that the company was on pace to become the first media firm to enter the $1 trillion market cap club. Moreover, it leaped this week, riding a 12% increase over the past seven days to trade at a $1,047 price.
That has led many to ponder why the streaming shares have been so successful, with Wall Street underperforming as a whole. Indeed, as Netflix (NFLX) jumped as much as 7% on Tuesday, outperforming the market, all eyes were on why investors were buying in as much as they were.
Also Read: Netflix (NFLX) Stock Price Prediction: Wall Street Gains New Bull
Interestingly, the answer seems to lie in the stability of the company. Even though it is entertainment, it has proven to be a stable play amid increased volatility. The aforementioned recession and tariff war fears have left increased volatility. To this point, with some of the biggest shares available, uncertainty has been the name of the game.
Its outperformance has been a trend for much of the year. The S&P 500 and Nasdaq are both down 10% and 15% on the year. However, Netflix is up more than 19% year-to-date. A big reason for its increased interest has been impressive Q1 earnings. The company posted $3 billion in profit with a 31.7% operating margin and $10.5 billion in revenue.
Subsequently, analyst William Blair noted that its surging value is connected to its safety. Indeed, the stock is “currently not experiencing economic headwinds with stable retention,” he noted. “Netflix is relatively more insulated from the recent market turmoil because it is not overly exposed to tariffs and will be relatively resilient in any potential future economic downturn,” analysts Ralph Schackart and Jack Brenczewski added.
Read More