Take that, big film studios. Shares of Netflix (NFLX) surged 6% Monday, a day after the company took home five Golden Globe awards for movies and television.
The stock is now up 18% this year, easily making it the best performer of the FAANG tech companies.
Facebook (FB), Amazon (AMZN) and Alphabet (GOOGL) are all up single digits this year. Apple (AAPL) is down nearly 7%.
Netflix has been on a hot streak as investors salivate about the prospects for more big gains in subscribers, revenues and profits this year — even as some are concerned the company continues to spend billions of dollars on new content.
Those bets seem to be paying off, though. Netflix will wind up adding more subscribers in the US than Wall Street is expecting, Piper Jaffray analyst Michael Olson predicted in a report Monday based on an analysis of search trends for Netflix on Google.
Sure, some analysts are worried that Netflix could lose some momentum as Amazon and Apple invest more in their own original content and Disney (DIS) launches its own streaming rival.
But for now, Netflix has all the buzz.
Just look at how much people have been talking about the choose your own adventure episode of Black Mirror and the Sandra Bullock thriller “Bird Box” on social media.
Overall, the Dow jumped another 200 points, or 0.8%, on Monday. That follows Friday’s 747-point spike.
All told, the Dow has surged more than 1,800 points since Christmas Eve. Not bad for a market that suffered its worst December since the Great Depression.
So what’s driving the turnaround? Mostly it’s cautious optimism about the trade war and health of the Chinese and American economies.
Investors are hopeful that the United States and China will reach a breakthrough on trade talks that began on Monday in Beijing. Wall Street has been worried that the trade clash is deepening slowdowns in both economies.
Friday’s rally was set off by China’s efforts to stimulate its economy as well as soothing words from Federal Reserve chief Jerome Powell, who promised patience while raising interest rates. And the blockbuster December jobs report has removed the fear of an imminent recession in the United States.