Netflix Stock Opens Higher After Last Week’s 6% Surge – Latest NASDAQ: NFLX Analysis

US equity markets are soaring, and Netflix stock price is no exception. NASDAQ: NFLX has been up 27% since the start of this year and the latest analysis suggests there could be even more upside in the coming days. Last week, the stock of the streaming giant closed with a 6% surge.

On Monday, Netflix shares are trading at $622 in the pre-market hours. However, the futures of the S&P 500 and NASDAQ 100 are trading slightly lower than the last weekly closure. It will be interesting to see how the market reacts in the early trading hours.

The fourth quarter earnings report of Netflix Inc. showed that the company finished 2023 with a significant % revenue growth of 12%. This was almost a 100% yearly increase from a 6% increase in the prior year. Nevertheless, the Q4 earnings fell short of the Wall Street estimates as the company reported EPS of $2.11.

However, the broader investor sentiment remained very positive around NFLX despite the Q4 earnings miss. Since then, the stock price has increased 26% and the outlook remains bullish for the coming weeks.

The macroeconomic sentiment also seems to favor US equities as the Fed is set to cut interest rates very soon. The CME Fed Watch Tool shows a 21.7% chance of a rate cut in the May 2024 FOMC meeting.

Brokerages Assign Netflix A Buy Rating

The stock ratings from the major brokerage houses and institutions impact the investment decisions of many market participants. This investment approach aligns with the quest to follow the 'big money'. According to the most recent Netflix stock news, the average brokerage recommendation for the stock is 1.96 out of 5. This places the stock within 'strong buy' and 'buy' ratings, the average calculated from the insights from 40 brokerages.

Netflix Stock Price Forecast

Technical analysis of NASDAQ: NFLX on a weekly timeframe shows a series of continuous higher highs and higher lows since its bottom in May 2022. In the coming days, I expect the price to move toward the weekly fair value gap, which lies above the $632.46 level. This region will be the final test of bulls' strength before a new all-time high.