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NFLX Stock Price Falls Despite Subscriber GrowthNFLX Stock Price Falls Despite Subscriber Growth Yesterday, after the close of the main trading session on the stock market, Netflix reported to investors for the 1st quarter of 2024. The report turned out better than expected: → earnings per share: actual = USD 5.28, forecast = USD 4.52; → gross income: actual = USD 9.40 billion, forecast = USD 9.27. → The number of subscribers increased by 9.3 million (expected +4.8 million). However, NFLX's pre-market share price today is hovering around USD 580, about 6% below yesterday's closing price. Negativity manifested itself in: → disappointing forecasts for the 2nd quarter; → investors also did not like the decision to stop providing quarterly reports on changes in the number of subscribers next year. If NFLX stock opens today around the USD 580 level, then it would indicate that the market has moved down to the lower boundary of the parallel channel (shown in blue). According to the technical analysis of NFLX stock: → a bearish gap may form on the chart, which is usually assessed as an obstacle to price growth; → the psychological level of USD 600 per NFLX share may act as resistance; → rounding pattern (shown by a red arc) – a sign of depletion of demand. Even if the NFLX stock price forms a bounce from the lower boundary of the channel, bulls will have to contend with the technical hurdles outlined above. And also negative fundamental factors associated with the fact that the Fed will hold interest rates for a longer time. According to the average consensus of analysts surveyed by TipRanks, the projected 12-month stock price for NFLX stock is USD 637.29. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
NASDAQ:NFLX
by FXOpen
1
Netflix Faces Subscriber Growth Challenge Netflix has consistently set benchmarks and pushed boundaries. However, as the company gears up to report its earnings, a closer look reveals a nuanced landscape where subscriber growth is no longer a foregone conclusion. The once-lauded crackdown on password sharing, while initially boosting numbers, now presents a plateauing challenge. With the fervor of the pandemic waning, Netflix must navigate through shifting tides to sustain its momentum. The Password-Sharing Conundrum Netflix's recent surge in subscriber numbers was partly fueled by its global crackdown on password sharing. Yet, analysts warn that the euphoria from this initiative might be waning, especially in mature markets like the United States. While the crackdown may still yield results in burgeoning markets like India, it's evident that Netflix needs more than a singular strategy to fuel growth. Diversification Beyond Traditional Models In a bid to diversify revenue streams and cater to a wider audience, Netflix ( NASDAQ:NFLX ) has ventured into an ad-supported tier. With over 23 million monthly subscribers already onboard, this move marks a significant shift in its business model. Analysts predict that the ad-supported tier could play a pivotal role in mitigating churn and bolstering revenue in the years to come. Moreover, recent price hikes in premium plans could further incentivize users to opt for the ad-supported model, driving up average revenue per user. Strategic Content Investment Netflix's commitment to content remains unwavering, with projected investments reaching as high as $17 billion this year. Unlike its competitors, who are trimming content budgets to achieve profitability, Netflix ( NASDAQ:NFLX ) is doubling down on its content strategy. By retaining a flat spending trajectory, Netflix has managed to attract subscribers while securing rights to coveted content. The recent trend of competitors selling exclusive content to Netflix not only reduces churn but also underscores the company's dominance in the streaming arena. Sports Entertainment: A New Frontier In a strategic move to diversify its content portfolio, Netflix ( NASDAQ:NFLX ) has entered the realm of sports entertainment. The recent deal with World Wrestling Entertainment (WWE) signals Netflix's intent to tap into the lucrative sports entertainment market without bearing the exorbitant costs associated with traditional sports rights. By acquiring WWE's flagship program, "Raw," Netflix aims to leverage the inherent stickiness of sports content while aligning with its ethos of entertainment-centric programming. Conclusion: As Netflix ( NASDAQ:NFLX ) prepares to unveil its earnings report, the spotlight shines on its ability to innovate and adapt in a rapidly evolving landscape. While challenges loom, from plateauing subscriber growth to intensifying competition, Netflix's strategic diversification and unwavering commitment to content position it as a formidable force in the streaming industry. By embracing change, seizing opportunities, and staying true to its vision, Netflix ( NASDAQ:NFLX ) charts a course towards sustained growth and continued relevance in the ever-expanding world of streaming.
NASDAQ:NFLX
by DEXWireNews
3 Things to Take Note on Netflix's Earnings Release LaterNASDAQ:NFLX is gearing up to unveil its first-quarter financial results on Thursday, April 18, 2024, after the market closes. Get ready for a glimpse into the numbers, expert opinions, and key highlights to keep an eye on. Earnings Estimates Analysts have their sights set on Netflix reporting first-quarter revenue of $9.275 billion. In the same quarter last year, the streaming giant raked in $8.162 billion. Netflix has surpassed expectations in two out of the last four quarters, including the most recent fourth quarter. During its fourth-quarter earnings report, Netflix hinted at first-quarter revenue of $9.24 billion, representing a solid 13.2% year-over-year increase. Analysts anticipate the company to post first-quarter earnings per share of $4.52, up from $2.88 in the corresponding period of the previous year. Netflix has exceeded analysts' earnings per share estimates in three of the past four quarters. The company's own guidance points toward first-quarter earnings per share of $4.49. In the fourth quarter, Netflix scored a whopping 13.12 million net subscriber additions, bringing its total to a staggering 260.28 million subscribers. Although Netflix's guidance suggests a sequential decline in net subscriber adds, it is expected to outperform the 1.8 million net adds reported in the first quarter of 2023. Password Sharing Netflix's crackdown on password sharing and the introduction of an ad-supported plan could lead to even more positive outcomes. Netflix's actions have the potential to drive additional growth. Initially, around 100 million users were sharing their passwords, indicating ample room for subscriber additions in 2024. Besides, monetization through the ad tier and potential price increases might drive further revenue growth. Another aspect to watch closely is Netflix's average revenue per member. The introduction of the ad tier and the potential for price hikes among subscribers could lead to increased monetization. With its ad-free mid-tier price in the U.S. currently lagging behind Hulu and Max, Netflix's growing base of ad tier users presents more potential for volume and pricing power in the thriving advertising market. Notably, Netflix has not raised prices on its Standard plan since January 2022, making a price increase seem imminent. Subscribers’ Growth Netflix subscriber growth in the first quarter might be overly optimistic. While sentiment around Netflix improved significantly after the impressive net add numbers in the fourth quarter, the question remains: how much upside to the estimated 4.5 million net adds for Q1 can be achieved. Summary The net subscriber count will undoubtedly steal the spotlight, followed closely by the potential announcement of a subscriber price increase, which could make waves in the headlines. Additionally, keep an eye on Netflix's foray into the world of sports. Rather than aggressively bidding for full seasons of live sports, the company has opted for captivating one-off events and sports docuseries. Netflix recently showcased a live tennis event in March and is eagerly awaiting a highly anticipated live boxing match between Mike Tyson and Jake Paul on July 20, which could go down as one of the company's most significant sports events to date. Moreover, Netflix's dominance in the sector and its perspective on market share and competition are topics that could provide valuable insights into its strategy. Get ready for Netflix's first-quarter results—a thrilling glimpse into the streaming giant's performance, projections, and strategic moves.
NASDAQ:NFLX
by wealth_compass
Netflix Q124 earnings preview – subscribing to volatility Release time – Thursday on the market close (6 am AEST / 9 pm UK time) Netflix is one of the preeminent trading stocks - where we often see big movement, a high propensity to trend and sizeable intraday high-low daily ranges that can appeal to the day traders. With Q124 earnings due on Thursday and the possibility of another sizeable price catalyst, Netflix is a stock that should be on the radar. Netflix is already something of a market darling, where the share price has significantly outperformed the S&P500 by 19.6 percentage points over the last 3 months and by some 51.7 percentage points over six months. Going into this earnings release, with price having recently traded to a multi-year high of $639, we now see consolidation with price tracking a range of $639 to $600, and importantly holding above the 50-day MA ($601.12), which has been a solid trend filter since October. We can see the Bollinger Bands tightening up into Q1 earnings as price moves remain contained to the 20-day MA, and traders refrain from taking risks until the facts are known. A daily close above/below the bands and/or the recent trading range could be meaningful and could suggest a higher probability that we see a trend develop, which could be a compelling hunting ground for more momentum-styled traders. Earnings pedigree Netflix does have a strong pedigree at earnings, having beaten consensus expectations in 7 of the past 8 quarterly earnings reports. Many will also recall the Q423 earnings report where NFLX added 13.1m paid streaming subscribers, a number well above expectations and subsequently, the shares rallied strongly. NFLX has a history of pronounced movement on earnings, with double-digit percentage moves in the prior 2 reporting quarters (on the day of earnings) and taking the period out the absolute move has averaged -/+ 12.8%. Being able to capture that movement in the post-market session is important for traders, and despite a potentially fast-moving market, there should be ample liquidity. By way of expectations of price movement for this earnings report, we can look at the options market and asses the implied move on the day of earnings, which now currently stands at -/+ 8.1%. This level of implied volatility speaks to the view that we could easily see movement in the share price once the earnings and guidance are known and could offer opportunity, but it is also a risk that those with existing positions may need to manage. What to watch this time around? For CFD traders going through the finer details of cash flow, subscribers’ numbers and sales growth seems a tough proposition. This is why most will let the market tell them how they feel about the shape of the business, and dynamically react to the ensuing price action. However, by way of a kicker, the likely overriding driver will be quarterly subscriber adds and any guidance for Q224 subscribers. The consensus (from investment bank analysts) is for 4.77m net subscriber adds in Q1, with 3.7m pencilled in Q2. The view on the street is this is a low-ball call – which won’t surprise given NFLX have beaten consensus expectations for sub growth for three quarters in a row - and investors are positioned for a number closer to 7m, even 8m. On headline Q1 earnings estimates, the consensus view is we for: Earnings per share (EPS) - $4.54 (Q224 estimates $4.55) Revenue - $9.264b (Q224 estimates $9.50b) Free cash flow - $1.89b (Q224 estimates $1.50b) There will be a focus on the crackdown on password sharing and how that is impacting earnings, competition, ad-supported tier, and commentary on unique programming. The consensus 12-month price target for NFLX is $626, so I question if there is scope for a solid earnings re-rating, which could see these targets revised higher. That said, price targets are largely irrelevant for traders, and price will react far quicker than any analyst can change their models. The market will let us know about the earnings and the operating environment and the price could see some outsized moves – one to put on the radar.
NASDAQ:NFLX
by Pepperstone
NFLX set up for a dip buy before the next earnings LONGNFLX has added 20% to price in the two months since the last earnings which were decent but not remarkable. The 2H chart shows a dip of about $20 per share coincident with a fall from the second upper VWAP line to support from the first upper VWAP line. The zero lag MACD shows line rising over the horizontal zero level in perhaps a sign of bullish divergence. The lines are now over the low amplitude histogram. I will take a long trade here targeting $650. Recent news is the CEO sold 20,000 shares out of the 12,000,000 that he has control of. Nothing unusual there. His friends and others ( myself included) may be buying the dip.
NASDAQ:NFLXLong
by AwesomeAvani
Worth a shot - NFLX short at 1:1The crazy run up of NFLX has been an almost straight line - which always makes me suspicious. To my observation retracement-less runs are mostly corrective. A healthy impulsive move has significant retracements (ie. Wave 2 is normally 61.8% by the books). Also noteworthy that the May 9, 2022 low is extremely oversold and the stock bounced without RSI divergence. Also per my observation, these OS (and OB) peaks are sooner or later taken out. Per the above points I will try for a short on this one at the 1:1. No idea what the catalyst would be, it is technical speculation.
NASDAQ:NFLX
by BelaK
Netflix : Is a Major Market Correction coming? 📉Following our last analysis, Netflix has precisely achieved the forecasted targets, with the wave ((iii)) extending to 227 to 261%. This suggests that a correction towards wave ((iv)) might be imminent, expected to range between 38% and 61.8%, thus laying the groundwork for a wave 5 and the culmination of a significant cycle in the form of a potential wave (2). A closer examination of the daily chart reinforces our primary scenario: the completion of Wave II at the low of $162.80. We are currently in the process of developing Wave (1), followed by Wave (2), and so forth. In our alternative scenario, we consider the possibility of a Regular Flat, especially when analyzing the complex correction currently unfolding. This might indicate that rather than concluding Wave (2) at $162.80, it was actually Wave (A), and we are now witnessing Wave (B) achieving exactly 100% of Wave I. Such alignment could signal a 5-wave decline towards a double bottom, marking a significant correction of 70%. While such a correction would be substantial, it is essential to explore all scenarios to be prepared for any market developments. Despite the potential for a significant pullback, our underlying outlook remains optimistic, expecting a continued upward momentum for Netflix.
NASDAQ:NFLX
by stromm
NETFLIX long run!Shares of Netflix Inc. NFLX, -1.01% slid 1.01% to $607.33 Thursday, on what proved to be an all-around great trading session for the stock market, with the S&P 500 Index SPX, +0.11% rising 0.11% to 5,254.35 and the Dow Jones Industrial Average DJIA, +0.12% rising 0.12% to 39,807.37. This was the stock's second consecutive day of losses. Netflix Inc. closed $27.06 short of its 52-week high ($634.39), which the company achieved on March 26th. The stock demonstrated a mixed performance when compared to some of its competitors Thursday, as Apple Inc. AAPL, -1.06% fell 1.06% to $171.48, Walt Disney Co. DIS, +1.14% rose 1.14% to $122.36, and Comcast Corp. Cl A CMCSA, +0.65% rose 0.65% to $43.35. Trading volume (3.7 M) remained 932,558 below its 50-day average volume of 4.6 M.
NASDAQ:NFLXLong
by FXBANkthe8055
Netflix, just another analysis.Have you ever wondered what happens when a growth stock, well, doesn't grow anymore? Netflix is, at the moment, just a few bucks (I mean billions lol) below the 100 B dollar market cap. kinda big uh? it's like 100 unicorn start-ups together :D Anyway, let's get to the point. In the past, the company now considered OLD for us, the younger, simply exists, and they just work (you know, revenue, FCF etc, all cool stuff) they're not considered growth, ANYMORE, cuz in the past they must have been considered so right? everyone grows, then you just "keep what you have" or fight for it when you cant grow bigger. Now, from the internet, it is kinda known (in my studies at least) that a PE of 13-17 makes a company a good buy, but it's not undervalued yet. Well, it is also true that a PE of 30 for a growth stock is considered a good ratio as well, cuz you know, that's a GROWTH stock. Ah almost forgot, when there are not a lot of numbers or a lot of past years to analyse, the PE can go well about 30 (remember tesla? XD) So, the point is: Netflix went from PE>100 in the past years, then it fell to PE = 38 after Q4 2021 and NOW after Q1 2022 has fallen to PE = 19 Does it recall something to you? My idea? this "thing" just went from "hypergrowth stock" 2 years ago (ofc covid helped, maybe its not a big pharma conspiracy but a Netflix one LOL), to a "simple growth" 1 quarter ago, and now its gone to a "value" stock. Before I end the analysis, a reminder: at the moment, Netflix has a PE of 19, well above the >13 expected for a value stock to be at a good price, which means the stock should fall another 30% AND, well, what a lucky coincidence another fall of 30% would bring the price to the MA200 of the MONTHLY chart. Trade safe, and remember that wall street uses Algorithms, faster and better than you for trading purpouses. Let me know in the comment if you have a DIFFERENT opinion, if you agree with me simply leave a like ;)
NASDAQ:NFLX
by camelot0707
Opening: NFLX 435/445/545/555 Iron Condor... for a 3.45 credit. Comments: Earnings play with the announcement today after close. 3.45 credit on buying power of 6.55; 52.6% ROC at max; 26.3% at 50% max. I'm basically looking for two things here: (1) IV contraction post-earnings; and (2) price to stay within the expected move, which the options market is pricing in to be about +/- 43 handles from current price (i.e., 448 to the downside, 534 to the up). And ... we'll see how that goes.
NASDAQ:NFLX
by NaughtyPines