Netflix Shares Rise 2% Ahead of Q1 Earnings

Netflix shares rose more than 2 percent on Thursday, reaching a midday high of 101.92, as investors anticipated strong first-quarter results due on April 16 amid recent price increases and expanding advertising revenue. The stock, which closed at 99.39 the previous day, has climbed from a February low near 77, reflecting renewed confidence in the streaming leader's growth strategy.

Wall Street analysts have issued several upgrades ahead of the earnings report. HSBC raised its price target on Netflix from 106 to 114 while maintaining a buy rating, suggesting an 11 percent upside from current levels. Goldman Sachs upgraded the stock to buy from neutral on April 6, setting a 120 target and citing improved revenue durability and operating leverage. Oppenheimer increased its target to 135 with an outperform rating, and the overall consensus from 50 analysts stands at a moderate buy, with an average price target of 115.50. These projections imply about 14 percent potential upside from the recent trading range around 99.

Netflix guided for first-quarter earnings of 0.76 per share and revenue of 12.2 billion, representing 15 percent year-over-year growth. Analysts expect a slight beat,...