Netflix post pandemic risk materialized in Amazon and DisneyThe news from Netflix this morning should not be a surprise to anyone, the company's executives had expressed two years ago during the peak of the pandemic that conditions were as good as they would get. With an increasing number of competitors coming under their skirt, Netflix is now reverting to the mean.
It would appear the third generation rule might be validating itself, as Netflix was the innovator and paved the way for other well-capitalized and more diversified competitors such as #AmazonPrime and #DisneyPlus the latter which has been punished for pushing radical progressive policies.
The key difference between Netflix and Disney is a multi-generational all-American brand, it is well entrenched in the global culture and has a massive war chest from diversified physical operations, cruise ships, music parks, and royalties across other entertainment segments.
Amazon has clearly a massive advantage being the owner of the largest cloud service AWS which in fact is used by Netflix for their operations. In essence, you can argue that Netflix is subsidizing Amazon Prime via operating expenses at USD$6B. Amazon Prime asymmetric advantages combined with the largest capital reserves from the largest online store, placing Netflix at the mercy of AWS.
In fact, we forecast that Netflix revenues and cash flows will continue to deteriorate to the point of no return within the next 24 months, placing itself as a target for Amazon.
NFLX
NETFLIX, scenarios and targets Fundamentally :
After the quarantine ended, people went out of their homes and Netflix became less in demand in the entertainment industry.
But what if people get used to life without Netflix?
Netflix needs serious solutions like new, good and exclusive business to get its users back
Technically :
price can pump from this level (255; 210) to 350 and maybe till 445
the down scenario the next support will be at 130 per share
Netflix (NASDAQ: $NFLX) Nearing 2018 Correction Low! 🤑Netflix, Inc. provides entertainment services. It offers TV series, documentaries, and feature films across various genres and languages. The company provides members the ability to receive streaming content through a host of Internet-connected devices, including TVs, digital video players, television set-top boxes, and mobile devices. It also provides DVDs-by-mail membership services. The company has approximately 204 million paid members in 190 countries. Netflix, Inc. was founded in 1997 and is headquartered in Los Gatos, California.
Ignore the Noise... Recognize a Buying OpportunityAt the end of the day as long as this stays above 233.68 its a Buy.
- Bigger picture is NFLX can complete a Running Flat C wave if it stays above 233.68 (i.e. does not retrace more than 100% of wave B
- The 5 count of wave C has formed a wolfe wave with the equilibrium point slightly above where it looks like it will open today (i.e. supply = demand near 272)
- look for a bounce at open to test the equilibrium level:
If it breaks above it expect a run further to try and re-enter the wolfe channel [ Initial target 307 by May 2nd ]
If initial target is reached expect that momentum to carry it higher to test upper channel [ Intermediate Target 335 by May 24 ]
A breakout from wolfe channel will give it the setup to run Target = 475 by July 22nd . If this materializes I do not expect it to complete gap fill to 500s without undergoing a minor correction or a least consolidation first.
*** If NFLX has a sustained break below 233.68 it opens up a short opportunity - will re-eval. based on how it behaves in the 234-272 range. But subscribers, I assure you, have nothing to do with this. NOT FINANCIAL ADVICE.
Have a blessed day,
The Alpinist
NFLX Potential for Bearish Reversal | 20th April 2022Price is moving nearer to the pivot level. We can expect a potential for bearish reversal from sell entry level of 351.85 which is in line with 78.6% Fibonacci projection towards the take profit level of 342.44 which is in line with 50% Fibonacci retracement and 61.8% Fibonacci projection. Our bearish bias is further supported by price trading below the Ichimoku cloud indicator
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary, and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interest arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed on the website.
Netflix - a Value Trap or Value Buy - You Decide!Oh. My. Goodness. Today's post is about Netflix. It's down 25% as I type. Yeeeeeesh!
So what happened? Well, bad earnings. Again. But here's the thing - this story gets more interesting. I don't own any Netflix, but I am watching it since the well known investor Bill Ackman plowed $1 billion into it last quarter. Oh, and by the way, OUCHY... He's now lost $250 million on that investment.
Kids, don't forget, it's not a loss until you sell 😜
60%... That's how much Netflix is down since its all-time highs a few months ago. Anyone who bought at those highs has been cut in half and then some. Investing and trading is not easy, and over the years, this always happens. Drawdowns, crashes, and bull markets and bear markets all come and go. The Netflix story fits all of that. Maybe that's why I felt like writing about it. I should also be totally clear: it's on my watchlist for a trade.
Let's dive in a little more, though, before deciding if we even should trade it.
I was pretty surprised to learn that Netflix's PE ratio is the lowest it's been in over 10 years. Netflix has a PE ratio in the 20s. If you look forward a year or so, its PE ratio is more like 18. At this point, you have to wonder, is Netflix a value investment? Wait, it's no longer a growth stock? Talk about the end of an era. I never thought I would see Netflix trading at a PE ratio like IBM.
The thing is, if Netflix can actually start churning out free cash flow at these levels, it really might be an epic value investment. It would also mean buyback time for them. Netflix has about $7 billion in cash. Surely they want to use some of this for their reinvestments, but also, at multi-year lows, a $2 billion buyback here is almost 2% of the company. Reed Hastings is a smart dude. He knows.
Let's keep going.
Netflix's market cap is approaching $100B again. This is its lowest valuation since 2019 and 2018. In Both instances, Netflix bounced and bounced rather quickly.
Hold up, Stef. Hold up. Are your really writing about potentially buying the dip in Netflix? No. Not at all. I am only thinking out loud. There is a bearish cash.
As most of us know, Netflix now has more competition than ever. There are more and more streaming platforms. In addition, is their content even that great? How does it compare to other companies? This is a determining factor as well. And, if it is the case, Netlfix is value trap. It will compete and compete, but no longer be a shiny growth stock.
Anyways, those are my thoughts. Streamlined and free to all of you. No subscription required.
I'll share an update if I actually trade this. In the meantime, my feet are up and I am watching in awe. The best entertainment is markets.
Major BULLISH signal (NFLX)The price after accumulation forms an upward impulse.
I think that if the price reaches the level today, then a rollback is possible from it.
My goal is to support 350.
Disclaimer: All content has only educational and informational purposes, and never should be used or take it as financial advice.
$NFLX channel breakout after earnings?Netflix is the first to kick off the April earnings season for big tech. The stock's price has been stuck in a 3 month channel between $330 and $410. Depending on the quarterly results, we expect a big move in the price. A break in either direction would be around $70. See how the street treats this first earnings report in order to get an idea of the overall climate ahead of the big guns:)
$NFLX Inverse Head & ShouldersOn the daily chart it looks like Netflix ($NFLX) is forming an inverse head and shoulders pattern with upside potential as marked on the chart. Analysts are not expecting earnings to be great, might get squeezed.
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NFLX Potential for Bearish Reversal | 8th April 2022We see the potential for a bearish reversal from our sell entry level at 368.56 in line with 38.2% Fibonacci retracement and 61.8% Fibonacci projection towards our take profit level at 353.88 in line with 161.8% Fibonacci extension . Our bearish bias is supported by price trading below ichimoku cloud indicator.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary, and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interest arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed on the website.
NFLX Potential for Bearish Reversal | 8th April 2022We see the potential for a bearish reversal from our sell entry level at 368.56 in line with 38.2% Fibonacci retracement and 61.8% Fibonacci projection towards our take profit level at 353.88 in line with 161.8% Fibonacci extension. Our bearish bias is supported by price trading below ichimoku cloud indicator.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary, and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interest arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed on the website.
NFLX Potential Bullish Bounce | 1st April 2022Price is near buy entry level of 365.55 in line with 50% fibonacci retracement. Price can potentially bounce up to take profit level of 397.42 in line with 78.6% fibonacci projection. Our bullish bias is supported by price trading above the ichimoku cloud indicator.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary, and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interest arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed on the website.
Growth Capped by the 50 Day Moving Average These are 6 randomly selected growth stocks that have been hammered and just rejected off the 50 day moving average yesterday.
Watch for the downside trend to continue in these stocks until they're able to at least breach the 50dma.
The question is do these stocks make higher lows (if the downward trend continues) or lower lows?
IMO if you are a trend follower, you should avoid any stocks on the long side if they look like this (unless you're trying to day trade a bounce).