Even its negative cash flow was not enough to deter investors, as Netflix‘s subscriber numbers are on a relentless climb and its revenue too continues to grow rapidly. Stockholders feel the cash flow will turn to green soon enough, and therefore continue to back the company even when there are factors that would deter them if seen in other companies.
FAANG stocks as a whole have outperformed the market thus far in 2018, Netflix being one of them. Their yield has averaged 18% in 2018 – a much more impressive number than the S&P 500‘s 2.8% rise.
How is FAANG doing as a cluster?
Alphabet and Facebook, two other FAANG stocks, suffered slight drops after the market correction. This was evened out for the group by Netflix‘s +6% rebound.
Netflix leads the FAANG stocks pack this year, having a year-to-date growth of 45.45%. Second place is held by Amazon with +27.96%, while Alphabet, Apple and Facebook round out the group with gains of +5.39%, +3.64% and +1.49%, respectively.