Best Stock to Invest During a Market Crash: Netflix

  Best Stock to Invest During a Market Crash: Netflix Experts consider Netflix to be the best stock to invest in during the Market Crash. Experts say that many stocks will come out strongly from the next market panic, and Netflix will be the best of them. Saying that investors should be prepared for the next bear market, experts emphasize that the markets and stock markets have entered a rapid recovery process after the pandemic. Share prices generally tend to go up, although we've seen most businesses grapple with some trouble. The S&P 500 (SNPINDEX: ^ GSPC) index is trading today with an average of 44 times the earnings. This is 28 times the earnings a year ago and the highest since the market panic in 2008. According to experts, Netflix is ​​the first stock to consider during the next market crash! Netflix NFLX (NasdaqGS) $501.67 +13.97(+2.86%) It is worth remembering how Netflix (NASDAQ: NFLX) investors reacted to the Covid-19 outbreak. The company first saw a sharp decline along with all other stocks. In the period between mid-February and mid-March of 2020, when the S&P 500 lost 29 %, Netflix share had dropped to 24 %. Netflix shares, which showed a very rapid and strong recovery after this decline, started to reach an all-time high by mid-April. Realizing that the curfew restriction is an advantage for the company, the investors started to show interest in the shares. The stock, which rose 84 % above the March low on July 10, showed a serious performance. At the same time, the S&P 500's earnings were only 32 %.

Experts consider Netflix to be the best stock to invest in during the Market Crash.

After this period, there has been no serious change so far and stocks have been trading in a rather narrow range since last summer. Stocks are now down 11 % from July 10. The broader market index, on the other hand, increased by 30 %. Netflix, which managed to increase the number of paid subscribers from 167 million at the beginning of the pandemic to 207 million, is rapidly increasing its earnings and free cash flow. Conclusion : Netflix, with its huge growth story, is the first stock to look at in the next market crash and provides a solid recipe for long-term returns.  

Source: The Motley Fool

 

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