'Enormous 8' Member Netflix Just Made New 52-Week High, Valuations Suggest Profit-Taking Opportunity

Netflix Inc NFLX stock recorded a new 52-week high on Feb. 27. The stock touched a high of $605.36 during the trading day – a level unseen over the past year.

The Enormous Eight

Netflix is a part of the ‘The Enormous Eight’ (as labeled by Charlie Bilello) group of stocks. The others include Alphabet Inc GOOG GOOGL, Meta Platforms Inc META, Nvidia Corp NVDA, Tesla Inc TSLA, Amazon.com Inc AMZN, Microsoft Corp MSFT and Apple Inc AAPL.

Netflix Stock: Up 22% YTD

The streaming platform’s stock is up over 84% in the past year. So far in 2024, the stock has gained 22%.

With the stock at its 52-week high, investors often wonder whether now is a good time to take profits or ride further up with the momentum.

Also Read: $1000 Invested In Netflix 15 Years Ago Would Be Worth This Much Today

Valuations Spell Caution: Forward valuations indicate Netflix stock at a 35.25 P/E ratio is trading at a more elevated price-to-earnings multiple than five of its Enormous Eight peers – with:

• Alphabet stock at 20.71
• Meta Platforms stock at 24.37
• Nvidia stock at 32.08
• Microsoft stock at 34.82
• Apple stock at 27.82

However, Tesla stock at 61.95 and Amazon stock at 41.38 P/E FWD still appear more expensive than Netflix stock.

Wall Street analysts, too, appear to be divided in their view on the company’s potential.

From those analysts who reviewed the stock in January-February, a majority appear to see a downside to Netflix stock from current levels. See, here.

For those invested in the stock, a 52-week high could be a time to take some profits off the table. For those looking to enter, now may not be the best time.

Read Next: Meta, Amazon, And Netflix: Will These Three Leading Growth Stocks Hold Gap Support?

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