Netflix stock has been on a tear — here's why

The epic month’s long rally in Netflix shares seems to show no signs of abating.

Netflix (NFLX) shares rose slightly on Wednesday despite a broader market sell-off, bringing its one-month gain to nearly 16%. The stock is by far the best component of the closely watched FAANG stock complex [Facebook, Apple, Amazon, Netflix and Google] during this stretch, topping a 7% gain for Apple.

The stock is currently trading at a fresh record high.

If Netflix shares finish today’s session in the green, it would represent the ninth straight positive session for the stock — that would be the longest streak in Netflix history, per Bloomberg data.

The Netflix bullishness reflects several factors, investors fancy.

First, the FAANG complex has fallen back into favor among investors as a hedge on a slowing U.S. economy due to the Delta variant.

“What’s most interesting is the continuation of the digital transformation, and investors really realizing that when we see these tech stocks they seem to be a little bit resilient to a lot of the other pressures that are put on other sectors,” Plexo Capital founding managing partner Lo Toney said on Yahoo Finance Live.

And more specifically on Netflix, the Street appears to be waking up to the financial power of the company’s upcoming content slate.

Earlier this week, EvercoreISI lifted its price target on Netflix to $695 from $635, citing a “very robust” product slate. Among that slate is fan favorite Seinfeld which will begin streaming on Netflix Oct. 1.

The sentiment echo other analysts on the Street.

“We continue to like Netflix shares toward year-end based on the strength of the 2H content slate, greater distance from pandemic pull-forward, and the still significant global secular streaming opportunity,” said J.P. Morgan analyst Doug Anmuth in a research note. “We believe seasonality becomes more favorable into September and content further ramps with Money HeistS5, Volume 1 (major hit, Sept 3), Lucifer S6 (strong historical viewership, Sept 10), and Sex Education S3 (strong historical viewership, Sept 17). And 4Q21 should be Netflix’s strongest content quarter ever with multiple returning hit series and tentpole/star-driven films.”

Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.