Is Netflix Stock a Buy Before Earnings?
The first quarter of 2020 is now behind us, and it was the worst first quarter ever for the stock market. The COVID-19 pandemic has wreaked havoc on economies worldwide and wiped out trillions in market value. With so many schools and businesses still closed to contain the outbreak, investors are wary.
In the coming weeks, all eyes will be on the quarterly reports of major corporations as management teams offer revised outlooks for the rest of 2020. Several technology companies like Apple and Microsoft have lowered their forecasts for the first quarter. However, as millions of people are stuck at home, entertainment companies like Netflix (NASDAQ: NFLX) have actually seen growing demand for their services.
While the Dow and S&P 500 fell 23% and 20%, respectively, in the first three months of the year, Netflix stock gained 16%. Already a star in this bear market, the streaming company is set to release its first-quarter results on April 21. If Netflix can manage to beat consensus estimates for the period and provide better-than-expected guidance, the stock is likely to soar toward its all-time high.
Source Fool.com
