Netflix (NFLX) plans to offer video games besides films, and investors like the move. Netflix stock price is at a record high, five days ahead of its Q2 2021 earnings.

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Investors cheered Netflix’s announcement that it plans to introduce video games to its platform, in a push beyond films. The announcement triggered a move higher in Netflix stock price, now at a record high.

The company is expected to release its Q2 2021 earnings on the 20th of July, and the market participants expect an EPS of $3.15. Netflix missed forecasts during the last three quarters of 2020, but it did deliver a positive surprise in Q1 2021.

Netflix is one of the companies that benefited greatly from the COVID-19 pandemic. As people were forced to spend more time indoors, its ratings increased dramatically.

Its stock price reflected this growing interest. It is up over 459% in the past five years, but flat over the last twelve months. The video games announcement may be just the trigger needed for another push higher.

Netflix Stock Price Pushes Higher Ahead of Q2 Earnings

Netflix beat Q1 2021 forecasts, and for the second quarter, the market expects an EPS of $3.15. Potential market-moving news may be the forward guidance offered in the announcement on how the company sees the introduction of video games enhancing its future financial performance.

The company’s revenue growth is much larger than the sector’s median (23.31% vs. 0.62%), but it trades at a high valuation, as reflected by the P/E Non-GAAP TTM ratio of 66.26, when compared to the 20.06 sector median.

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What Do Analysts Say About Netflix Stock Price?

Out of eighty-three analysts covering the Netflix stock price, fifty-nine give buy ratings, fourteen are neutral, and the rest say sell. The most notable change recently was the upgrade to buy from Credit Suisse, with a target of $586 per share.