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

Gold prices ease after hitting record high

News

Week Ahead Preview: 17th of February

News

Europe stocks hit record high on strong earnings

News

BRIC currencies mostly gain as US inflation rises

News

Refresh your portfolio with Coca-Cola?

News

GBP/USD price may rally to multi-week high

Trends & Analysis
News

Gold prices ease after hitting record high

News

Week Ahead Preview: 17th of February

News

Europe stocks hit record high on strong earnings

News

BRIC currencies mostly gain as US inflation rises

News

Refresh your portfolio with Coca-Cola?

News

GBP/USD price may rally to multi-week high

Asset Watch

Does Netflix rally this week?

Thursday, January 21, 2025

 

As we enter a new era with Donald Trump as the U.S. President, tariff talk and news headlines could bring forth a lot of daily volatility in 2025. However, with investors laser-focused on Netflix’s Q4 earnings on Jan. 21, Big Tech’s fundamentals could be under heavy scrutiny in the weeks ahead.

As a result, while the macro crowd will be working overtime to assess Trump’s agenda, the bottom-up bulls think Netflix could be a winner this week.

BMO says buy

BMO Capital Markets analyst Brian Pitz upgraded Netflix on Jan. 14, raising his price target from $825 to $1,000.

He cited “Successful live events in the fourth quarter of 2024, WWE beginning in the first quarter of 2025, Women’s World Cup Soccer in 2027, and upside from yet-to-be-announced titles.”

He also increased his year-end 2025 ad-supported subscribers (the lowest cost plan) estimate from 60 million to 90 million, and $3 billion of global advertising dollars by the end of 2025 should provide “meaningful contributions in 2026 and beyond.”

Consequently, the Jan. 21 earnings release could be a catalyst that ends Netflix’s recent correction.

Is the uptrend intact?

The 20-week moving average is a key trend indicator and Netflix bulls have been rewarded when the stock trades above it. If you analyse the movement of the blue line, you can see that despite some choppy periods, being long above the 20-week MA has been a profitable strategy.

Therefore, with the stock still above the blue line, the outlook is constructive as long as Netflix stays above $806.

What happens if earnings miss?

The 2022 crash highlights how investors can overreact to short-term headwinds. When Netflix reported two consecutive weak quarters, the stock sunk from $700 to below $200. But, even a terrible print on Jan. 21 likely only results in a retest of the $700 breakout, which is common, and could be a healthy long-term development.

All in all, a repeat of 2022 is highly unlikely, and ratings from Netflix’s recent events support resilient consumer demand.

The trading playbook

Cautious traders should wait until after the release to make their play, as technical breakdowns are present on shorter-term charts. In contrast, the medium-term uptrend remains healthy, and sold earnings reports from the largest U.S. banks point to a resilient economic backdrop where Netflix should prosper.


Site by Pink Green
© ADSS 2025


Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC – S.P.C (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates under First Category: Dealing in Securities and Fifth category: Arrangement and advice (Introduction). ADSS is a Limited Liability Company – Sole Proprietorship Company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.