Netflix hits a record high - and it's the best performing FAANG stock this year
- Netflix hit a record high Monday.
- Netflix is part of the 'FAANG' stocks, which are outperforming the S&P this year.
- Netflix is outperforming the FAANGs.
Netflix hit a record high above $295 a share Monday, giving the company a market cap of about $127 billion.
Shares of the video-streaming company have gained momentum following a solid fourth-quarter earnings report and the announcement of a $300 million deal with "Glee "and "American Horror Story" producer Ryan Murphy.
The company's negative free cash flow also doesn't seem to be a concern for investors as Netflix's subscriber base and revenue growth continue to impress. Investors are expecting positive cash flow to come soon.
FAANG stocks, of which Netflix is a member, have been outperforming the broader market this year. They have yielded a return of more than 18% in 2018, far better than the S&P 500's 2.8% gain, according to Bespoke Investment Group.
While FAANG members Alphabet and Facebook are down slightly after the stock market's correction, Netflix shares have rallied 6%.
Netflix is the top-performing FAANG stock in 2018, having gained 45.45% year-to-date. Meanwhile, Amazon (+27.96%) is the only other member of the group currently sporting a double-digit percentage gain this year, but Alphabet (+5.39%), Apple (+3.64%) and Facebook (+1.49%) are all trading higher.
