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Netflix Stock Performance Before Q4 Earnings

With Netflix set to report its fourth-quarter earnings on Jan. 20, the stock market is abuzz with speculation about its performance. Historically, the stock has shown a tendency to surge after the Q4 earnings report in January. However, this pattern is not always consistent, and investing heavily in Netflix stock just before earnings can be a risky move.

Surprises in Netflix's Q4 Reports

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Over the years, Netflix has managed to deliver pleasant surprises in its Q4 earnings reports. Despite challenging market conditions or competition, the company has often outperformed expectations. For example, in January 2025, the stock was undervalued before the report, yet it managed to impress investors. Similarly, in 2024, when competitors offered discounts during the holiday season, Netflix still managed to shine.

Short-Term Volatility of Netflix Stock

While Netflix has a strong track record of growth and success, not every Q4 earnings report leads to a significant uptick in the stock price. In January 2022, share prices plummeted by as much as 31.6% after the Q4 2021 report. This unexpected turn of events highlighted the unpredictable nature of the stock market, even for established companies like Netflix.