Why Netflix Stock Jumped 9% Wednesday

Netflix (NASDAQ: NFLX) outperformed a rising market on Wednesday. Shares were up 9% as of 3:26 p.m. ET, compared to a 2.1% increase in the S&P 500. That rally, though, hardly erased any of the losses that shareholders in the streaming giant have endured recently. The stock remains down by about 70% year to date.

Yet that slump, plus some potentially good earnings news on the way, laid the groundwork for Wednesday's share price rebound.

The main factor pushing Netflix's stock higher appears to be a rebound in optimism about some of the companies that were hit hardest during the current bear market decline. The streaming video giant entered 2022 with a market capitalization of nearly $250 billion. Today, it's valued at just $80 billion.

Source Fool.com