Netflix, Inc. (NASDAQ:NFLX) content chief Ted Sarandos told film and TV executives big budget projects must be more cost-effective

Netflix, Inc. (NASDAQ:NFLX) content chief Ted Sarandos told film and TV executives big budget projects must be more cost-effective

Netflix, Inc. (NASDAQ:NFLX) content chief Ted Sarandos told film and TV executives big budget projects must be more cost-effective

Netflix is tightening its wallet when it comes to big-budget projects with a narrow appeal, according to a new report from The Information.

Chief Content Officer Ted Sarandos reportedly told some Netflix executives last month that their spending needs to be more cost-effective in terms of the viewership for a show. In the past, Netflix has let chatter around a big project help justify its spending, even if viewership was not equally massive. But Sarandos’ new guidance calls for shows and movies to bring in audiences that make up for their production spend, the report says.

Netflix has been spending big for original content. In the first quarter of 2019, the company reported net cash flow of negative $380 million, compared with negative $287 million for the same quarter the previous year. In April, Netflix announced that it would offer about $2 billion in debt to fuel its content spend and other expenses. The company had already announced a separate $2 billion offering several months earlier.

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 395.27.

The projected lower bound is: 354.50.

The projected closing price is: 374.89.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 3 rising windows in the last 50 candles–this makes the current rising window even more bullish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 71.5775. This is not an overbought or oversold reading. The last signal was a sell 4 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 60.51. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 112 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 105.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 4 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 9 period(s) ago.

Rex Takasugi – TD Profile

NETFLIX INC closed up 7.280 at 374.600. Volume was 23% below average (neutral) and Bollinger Bands were 20% wider than normal.

Open High Low Close Volume___
373.500 376.660 372.000 374.600 5,001,518

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period     50-period     200-period
Close: 366.05 360.67 337.60
Volatility: 28 36 53
Volume: 5,242,662 5,790,667 9,833,358

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

NETFLIX INC gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
NETFLIX INC is currently 11.0% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of NFLX.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on NFLX.O and have had this outlook for the last 7 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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