Netflix is the IBD Stock Of The Day as the subscription streaming video leader rides high following its blowout third-quarter earnings report.
On Oct. 17, the internet television network easily beat Wall Street's targets for the third quarter and guided above views for the current period.
Netflix stock jumped to an all-time high of 773 on Oct. 21. Since then, it has traded in a tight range while the overall market shows weakness.
On the stock market today, Netflix stock rose a fraction to close at 756.03.
IBD analysis indicates that Netflix stock is forming a three-weeks-tight pattern. If it continues to trade in a tight range through Friday, Netflix stock would offer a buy point of 773. Aggressive investors could use Tuesday's high of 763.88 as an entry. Keep in mind that Netflix's most recent base was a riskier, late-stage pattern.
On Tuesday, Guggenheim analyst Michael Morris reiterated his buy rating on Netflix stock and raised his price target to 825 from 810.
Netflix Stock Is On Two IBD Lists
Morris is bullish on Netflix's advertising business from its ad-supported service offering.
More than 50% of Netflix sign-ups in the third quarter were for its ad-supported tier in those markets where the ad tier is available.
Meanwhile, MoffettNathanson analyst Robert Fishman declared Netflix the victor in the streaming video market in an Oct. 23 report.
"The hard-fought streaming wars have now largely come and gone," Fishman said. "Netflix has emerged as the clear victor."
Fishman noted that Netflix's enterprise value is now greater than Walt Disney, Warner Bros. Discovery, Fox and Paramount Global combined.
Netflix stock is on two IBD lists: IBD 50 and Big Cap 20.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
