Netflix stock leads Nasdaq 100 gains following earnings report

Yahoo Finance Live anchors discuss why Netflix stock is moving higher on Friday.

Video Transcript

JARED BLIKRE: Now, let me shift attention to the NASDAQ 100 from the Dow. And this is over the last five days. Netflix here is the leader. If we sort by equal weight, you can see up in the upper left, Netflix up 25% for the week. And here is a 20-year chart. Now this looks a little bit different. It had been in a nice uptrend and severely broke that. That's what happens with some of these growth stocks. But I just want to show you on a two-year basis what that's looking-- what that is looking like.

Now we know the news this week, Netflix has somewhat improved their response to subscriber losses. And it seems like they have that on track right now. Lots of hope with their reengineering strategy, also pushing to increase their revenues through that ad-supported service and also to monetize the freeloaders, a.k.a. me. So we'll see how that works out, guys.

DAVE BRIGGS: You are full of surprises today, brother. Oopsies, you had me at that. Netflix is really interesting. Obviously, the story moving forward is the ad tier and the password sharing. But in terms of the actual content, I think it's interesting because they have this sequel to "Knives Out" coming, and I always forget the name. It's called "Glass Onion." And while the theaters want them to do more of that, this is limited-- one week, 600 theaters. And on the other hand, they've seen "Dahmer," 10th most streamed show of all time.

JARED BLIKRE: It's not bad.

DAVE BRIGGS: And so you can't help but wonder which direction they'll take in terms of content moving forward. I think the "Dahmer" type model seems to favor them a lot more, finding these franchises that put up these massive numbers.

SEANA SMITH: Yeah, it certainly does. And it also-- I think it just begs the question, just in terms of what that subscriber growth is going to look like. Like, yes, we got a very, very strong number for the third quarter. I think questions the ad tier is going to boost numbers, at least in the short-term.

But how many of those subscribers are going to potentially downgrade? I know you and I have talked about that many times. And how many new subscribers are really going to be able to pull in? Because yes, it's cheaper than what the entry-- what the base price is now. But it's still a lot. And people already are subscribed to so many different services that you've got a question where that saturation number is.

DAVE BRIGGS: It will be an interesting story ahead.