”You have to be all right with shares reacting to a different set of data points,“ one top investment adviser says of the streaming giant’s business
There’s a secret ritual one Wall Street investment advisory chief uses to focus on a quarterly prediction about how Netflix stock will trend after an earnings report: “I play ‘Mysterious Ways’ by U2.”
The longtime stock picker said the song is about man’s struggle to understand the complexities of the unknown. Netflix, which reports first-quarter results Tuesday after the closing bell, is legendary on Wall Street for a stock that can plunge when it beats expectations or rally when it doesn’t. Instead, investors view subscriber growth as the key market-moving data — forcing profit, loss and revenue line items to take a back seat.