Netflix's Most Wonderful Time Of The Year

| About: Netflix, Inc. (NFLX)

With much of the United States engulfed in record low temperatures, a lot of us can't wait for January to end. For investors in Netflix (NASDAQ:NFLX), though, there is no better month than January. The table below lists the average monthly performance for NFLX since it came public in 2002. During the month of January, shares of NFLX have averaged a gain of 21.78% with positive returns 73% of the time. In the last three years alone, NFLX has seen January returns of 78.5%, 73.5%, and 21.8%, respectively! With these numbers, no other month even comes close to January in terms of the stock's average monthly return.

While January is the best month of the year for NFLX, July is the worst and only month where the stock has averaged a decline (-3.99%). It is interesting to see that the stock's best month is January just as the holidays are winding down, winter is setting in, and there isn't much else to do. Then as summer begins, the days are at their longest, and people spend more time outdoors, the stock sees its worst performance of the year. There are most certainly a lot of other factors at play, but the seasonal aspect definitely makes some sense.

Click to enlarge