Netflix, Inc. (NASDAQ:NFLX) Quarterly Earnings Report In Shifting Streaming Landscape

Netflix, Inc. (NASDAQ:NFLX) Quarterly Earnings Report In Shifting Streaming Landscape

Netflix, Inc. (NASDAQ:NFLX) Quarterly Earnings Report In Shifting Streaming Landscape

Netflix will report its second-quarter results Wednesday during a period of dramatic change in the streaming sector, as bulls and bears marshal evidence for their contrasting views of the company’s future.

Believers in the long-term viability of Netflix point to its global footprint and programming juggernaut, with stellar (albeit self-reported) viewership for multiple Emmy nominee When They See Us and the film Murder MysteryStranger Things 3also set viewership records this month, according to Netflix, which will boost third-quarter results.

Overall Netflix sentiment on Wall Street remains largely upbeat as it approaches the 10th anniversary of its first stream. Look no further than the company’s share price, which was at $366.55 a share in Tuesday afternoon trading. It has held steady in recent months despite a drumbeat of news about Disney+ undercutting it on price, Apple gearing up to launch Apple TV+, and several heavily watched shows leaving the platform.

“The stock has been trading sideways the past four months (and is at Oct ’18 levels), likely on anticipation of upcoming competitive services from Disney, Apple, etc.,” wrote Cowen & Co. analyst John Blackledge. “We think these fears are overdone.” In a recent note to clients, Blackledge reaffirmed his “outperform” rating on the stock, with a 12-month price target of $455.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 359.54.

The projected upper bound is: 384.14.

The projected lower bound is: 347.08.

The projected closing price is: 365.61.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 14.9084. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 5 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 48.19. 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 122 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 -86. This is not a topping or bottoming area. The last signal was a sell 3 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 sell 1 period(s) ago.

Rex Takasugi – TD Profile

NETFLIX INC closed down -0.610 at 365.990. Volume was 8% below average (neutral) and Bollinger Bands were 12% narrower than normal.

Open High Low Close Volume___
370.090 371.340 364.920 365.990 5,863,222

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

Moving Averages: 10-period     50-period     200-period
Close: 376.01 360.64 338.09
Volatility: 20 33 52
Volume: 5,186,627 5,468,649 9,637,160

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 is currently 8.3% above its 200-period moving average and is in an upward trend. Volatility is low 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 17 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.