FXTM information and reviews
FXTM
93%
IronFX information and reviews
IronFX
92%
Libertex information and reviews
Libertex
91%
FXCC information and reviews
FXCC
90%
Markets.com information and reviews
Markets.com
89%
FxPro information and reviews
FxPro
88%

Netflix - The Streaming King


17 October 2020

Netflix is still one of the most popular stocks, even with it losing rights to movies such as Disney and Pixar Productions, or Friends. Over the last couple of years, there have also been talks regarding whether Netflix’s success will continue, with new competitors joining the market such as Disney+, Apple Live and AT&T. However, the stock has doubled in size in less than 12 months, with its highest success this week as the company’s next quarterly figures are about to be released.

The Movement 


The stock has been increasing consecutively, with a gain of 29% over the past 10 trading days. This has increased the company’s market value to $250 billion. The surge makes Netflix more valuable than Walt Disney, AT&T, Verizon Communications, or Comcast. The streaming-video company is almost even with the chip giant, Intel. 

Netflix is a striking contrast to a broader market that has declined amid the COVID-19 pandemic. A major factor in Netflix’s success in recent months is that home-bound consumers globally have sharply increased their streaming of television and movie content on Netflix. Many consumers are expected to remain at home even amid governments’ plans to re-open parts of the U.S. and other parts of the world. There have also been rumours of a possible second global lockdown.

Investors will closely look at whether Netflix’s gains are sustainable long term when it reports earnings for the second quarter on the 16th July after the market closes. As the release gets closer, traders should expect higher volatility and possibly even the days after. 

A key element which traders and the market will look at, is the total paid streaming subscribers for Netflix during quarter 2. In order to sustain growth in earnings per share and revenue, Netflix must continue to add to its subscriber base, especially in international markets where it sees the fastest growth. In the second quarter, analysts expect Netflix’s total paid subscribers growth to be the strongest in the past 5 quarters.

Goldman Sachs raised its price target on Netflix, Inc. to a “market high” of $670 on Friday, expecting the streaming entertainment giant’s second quarter profits and revenues to match or exceed the first quarter’s outstanding results. Wall Street consensus on Netflix stock has moved steadily into the “Moderate Buy” column so far in 2020, with 22 “Buy” and 9 “Hold” ratings highlighting an increasingly bullish outlook. However, four analysts are still recommending that shareholders sell their positions.

Even with a lot of talk from different large organizations such as Goldman Sachs and JP Morgan, nobody in the market can guarantee the figures which are likely to be released, or the market’s reaction. Over the previous years, Netflix has witnessed a positive Earnings Per Share, but yet shareholders sold the stock. When there are large movements it also tempts traders to cash in profits. 

The Charts 


Until now we’ve spoken mainly about the fundamental side of Netflix and the movement so far. However, traders also need to bear in mind the technical analysis, which is the analysis of the charts. Technical analysis is just as important as looking at the prospects of the company. Some traders even deem this to be more important. 

So far we have seen strong price action towards a neverending upward trend. However, traders should be aware that the higher the price goes the more traders will possibly want to cash in. On Monday we saw the largest bearish candlestick which was larger than the previous 4 bullish candlesticks. 

Traders should expect a lot of volatility not only on Netflix but also generally within the stock market as quarterly reports continue to be released. In addition to looking at the profits, assets and liability reports, traders should also keep referring to technical elements of analysis to ensure their timing is correct and not entering at a price reversal or retracement.
 

This article was written and submitted by eXcentral. 

Disclaimer: This material is considered a marketing communication and does not contain, and should not be construed as containing investing advice or a recommendation, or an offer of or solicitation for any transactions in financial instruments or a guarantee or a prediction of future performance. Past performance is not a guarantee of or prediction of future performance.

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.81% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

#source

Related

Meet the new cent account on FreshForex
Meet the new cent account on FreshForex

We present you a new type of cent account - Pro.Cent. What is its feature and what will happen to the old account? The previously available cent account...

25 Oct 2021

Trade CFDs on 900+ of the Biggest Companies this Earnings Season with HotForex
Trade CFDs on 900+ of the Biggest Companies this Earnings Season with HotForex

Traders with the internationally acclaimed multi-asset broker HotForex can trade CFDs on the stocks of over 900 companies during Earnings Season with tight spreads...

22 Oct 2021

FxPro has added over 2000 new shares on MT5 platforms
FxPro has added over 2000 new shares on MT5 platforms

The global broker FxPro has carried out the largest expansion of its asset line in the company's history! The range of financial instruments on the MetaTrader 5 platform...

22 Oct 2021

Fintech Exinity launches innovative solutions
Fintech Exinity launches innovative solutions

Exinity, the new wealth engine with an ambition to unlock the value of risk-driven trading for ambitious individuals, today launched two new trading and investment solutions...

21 Oct 2021

Trade cryptocurrencies 24/7 at AMarkets
Trade cryptocurrencies 24/7 at AMarkets

Starting October 23, you can trade cryptocurrencies around the clock. Now, the AMarkets crypto trading conditions are in no way inferior to those at popular crypto exchanges...

21 Oct 2021

MetaTader 5: most powerful, popular and convenient platform
MetaTader 5: most powerful, popular and convenient platform

MetaTader 4/5 is one of the most powerful, popular and convenient platforms for trading on the global exchange. They are available in versions for all major operating systems....

20 Oct 2021


Editors' Picks

OctaFX information and reviews
OctaFX
86%
HotForex information and reviews
HotForex
85%
XM information and reviews
XM
80%
FXCM information and reviews
FXCM
79%
AvaTrade information and reviews
AvaTrade
76%
LegacyFX information and reviews
LegacyFX
75%

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.