Netflix Stock Earns Upgrade Ahead of Earnings

Core Viewpoint - Netflix Inc. is set to announce its fourth-quarter earnings on January 21, aiming to replicate its previous post-earnings success from October [1] Group 1: Earnings Expectations - Historically, Netflix stock has shown mixed post-earnings reactions, with four out of eight sessions finishing higher in the past two years [2] - After the October earnings report, Netflix stock surged by 11.1%, and options traders are currently pricing in a 9.4% potential move for the stock, which is higher than the average 8.6% post-earnings swing over the last eight reports [2] Group 2: Stock Performance and Analyst Ratings - Shares of Netflix are currently up 1% to $856.50, boosted by an upgrade to "buy" from Seaport Research Partners, with price-target increases from BMO and Oppenheimer to$1,000 and $1,040, respectively [3] - Despite a 25$941.75 on December 11, Netflix stock is down 3.8% year-to-date [3] - An outstanding earnings report could influence analysts, as 17 out of 41 brokerages currently maintain a "hold" or worse rating on Netflix [4] Group 3: Options Market Sentiment - Options traders are showing a preference for puts ahead of the earnings announcement, with a 10-day put/call volume ratio of 1.02, indicating unusually high demand for puts [5] - This put/call ratio ranks in the 90th percentile of its annual range, suggesting that traders may need to adjust their positions if there is a post-earnings upward movement [5]