Netflix shares are strengthening from a 9-month low of September 24, adding more than 5% in value. For the last three months, the emitter’s quotes decreased by 30%. On October 16, after the market closes, the company will report for Q3 2019. The Wall Street expects another strong report, with earnings per share growth by 18% (YoY) to USD 1.05 and revenue growth by 31% (YoY) to USD 5.25 billion.
Over the past week, Netflix shares showed a 0.19% decrease in value. S&P500 went up by 1.09% within the same period.
Support and resistance
The emitter stabilized after a prolonged fall. At the moment, the company’s shares are consolidating. Shares of #NFLX are testing local levels of support and resistance at 253.00 and 275.00, respectively. A technical correction is possible in the near future.
Indicators show opposing signals: the price has consolidated below MA(50) and MA(200), and MACD histogram started to grow. Positions are to be opened from key levels.
Comparing the company’s multiplier with its competitors in the industry, we can say that Netflix shares are overvalued.
Support levels: 253.00, 234.00.
Resistance levels: 275.00, 284.00, 300.00.
If the price consolidates above the resistance level of 275.00, one should expect #NFLX shares to correct. Potential profits should be locked in by orders at 290.00, 300.00, and 315.00. Stop loss – 260.00.
If the price consolidates below the level of 253.00, one may consider selling the company’s stock. The target movement level will be 230.00–215.00. Stop loss – 270.00.
Implementation period: 3 days.
Netflix, Inc. is an online entertainment services. The company operates in three segments: local broadcasting, international streaming and local DVDs. It offers television series, documentaries and feature films across various genres and languages. The company offers members the ability to receive streaming content through a range of Internet-connected screens, including televisions, digital video players, TV receivers and mobile devices. It also provides DVD membership services. The company has approximately 139 million paid members in 190 countries. Netflix, Inc. was founded In 1997 based in Los Gatos, California.
Jason P. Vasser gives us an analysis into the recent geo-political news hitting the services, legal, and technology sectors. He has been an financial advisor for over 10 years in the NYC and in recently turned his experience investment and passion for journalism into a full time role. His responsibility is for the analysis of companies and writing valuable information for shareholder community.
Jason is an a seasoned writer who has a passion for tech and travel. His goal is to see travel the world and report on the use of technology from a market perspective.