Account

New to ADSS? Open an
account now to get started.

OR

Already have an account?

Add funds to your ADSS account

Account

New to ADSS? Open an
account now to get started.

Add funds to your ADSS account

Trends & Analysis
News
China stocks end mixed despite PBoC announcement
News
Asia stocks rise on prospects of Fed easing hikes
News
HP joins the tech layoff spree
News
Best Buy shares spike amid upbeat Q3 print
News
Investors cheer Disney CEO Bob Iger’s return
News
Foot Locker shares surge after upbeat earnings report
Trends & Analysis
News
China stocks end mixed despite PBoC announcement
News
Asia stocks rise on prospects of Fed easing hikes
News
HP joins the tech layoff spree
News
Best Buy shares spike amid upbeat Q3 print
News
Investors cheer Disney CEO Bob Iger’s return
News
Foot Locker shares surge after upbeat earnings report

CFDs & spread bets are complex instruments & come with a high risk of losing money rapidly due to leverage. 73% of Retail investor accounts lose money when trading CFDs & spread bets with this provider. You should consider whether you understand how CFDs work & whether you can afford to take the high risk of losing your money.


Account
New to ADSS? Open an
account now to get started.
Open an account Login

Asset Watch

Is Netflix a must-see stock?

 

Wednesday, October 25 2022, 11:20am GMT

After Netflix added 2.41 million net subscribers in Q3 versus management’s expectation of one million, the streaming giant was back in investors’ good graces. Netflix’s letter to shareholders stated that despite “a challenging first half, we believe we’re on a path to reaccelerate growth” and that “we estimate [our competitors] are all losing money, with combined 2022 operating losses well over $10 billion, vs. Netflix’s $5 to $6 billion annual operating profit.”
With the fundamentals trending in a positive direction, will the technicals remain as resilient?
On Oct. 21, Netflix closed above its 200-day moving average for the first time since January. Stocks also soared above its 50-day MA, and the key level acted as resistance until it became support in July. Therefore, momentum is in place for the first time in a long time.

Source: TradingView

Netflix sunk by more than 30% after reporting poor first-quarter earnings on Apr. 19. However, the after-hours sell-off created a large gap that has yet to be filled. So, if Netflix maintains its bullish momentum, next-level resistance of $329 is near the March and pre-gap intraday lows, and a realisation implies a nearly 14% upside.

 

On the other hand, a concern for Netflix is its daily RSI near 70 signals overbought conditions. While the uptrend can continue, a cooling-off period may be needed.

 

Is it wise to wait for a pullback to the 200-day MA ($278.21) or will Netflix fill the gap near $329 without any interruptions?

 

Sources:

Netflix earnings:

https://www.cnbc.com/2022/10/18/netflix-nflx-earnings-q3-2022.html

 

Netflix shareholder letter:

https://ir.netflix.net/financials/quarterly-earnings/default.aspx

ADS Securities London Limited “ADSS” is an execution-only service provider. This material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or investment objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by ADSS that any particular investment, security, transaction or investment strategy is suitable for any specific person. To the extent that any content in this material is construed as investment research, you must note and accept that the content was not prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.  This material may contain links to third party websites, and any content, or use of your personal data by any third party websites is not the responsibility of ADSS or any member of the ADSS Group.


Site by Pink Green
© ADSS 2022


CFDs and Spreadbets are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of Retail investor accounts lose money when trading CFDs and Spread Bets with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

ADSS is a trading name of ADS Securities London Limited, a company registered in England and Wales with company number 07785265 (VAT Registration Number: 212722447). Registered address 9th Floor, 125 Old Broad Street, London, EC2N 1AR. ADS Securities London Limited is authorised and regulated in the UK by the Financial Conduct Authority (FRN 577453).

The information on this site is not directed at residents of the United States, Canada, EU or any particular country outside the UK, and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law.

All opinions, news, analysis, prices or other information contained on this website are provided as general market commentary and does not constitute investment advice, nor a solicitation or recommendation for you to buy or sell any over-the-counter product or other financial instrument. Please ensure you understand all risks and seek independent advice if necessary.