Will NETFLIX surprise investors?

Will NETFLIX surprise investors?

2023-01-20 • Actualizada

What will happen?

Netflix, one of the world's leading entertainment services, will present its earnings report for Q4 2022 on January 19, 2023, after the stock market closes (23:00 GMT+2).

How can it affect the stock price?

The Netflix stock (NFLX), with a market cap of $145.17B and a whooping 10 000+% rise since its inception 16 years ago, experienced some turbulence for a short period last year while trading around the $250 share price. However, the NFLX stock quickly recovered and rose to over $300 towards the end of the previous quarter of 2022.

NETFLIXDaily - 1701.png

To top it off, the current media buzz about the company lends crucial pointers to even better growth projections. A vital media report published by Polygon three weeks ago describes Netflix's intent to crackdown on password sharing - a move that could potentially increase sign-up rates, among other things.

The stock is trading within a rising channel in an overall uptrend (based on the Moving Averages), meaning we could see the price rise higher toward the $370 mark.

NETFLIXH1 - 1701.png

The trend is also bullish on the lower timeframe (H1), with recent higher highs and lows created structurally. As seen in the chart above, there is also a consolidation forming on the H1 timeframe, hence the knife-edge scenario.

My overall expectation is that if the report overperforms the analysts’ expectations the NFLX stock will continue its bullish trend for at least a few more weeks. However, if the company disappoints investors, the price might break the rising channel and drop to $220. 

Analysts’ Expectations: 

Revenue: 7.84B

EPS: 0.5934

CONCLUSION

The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately. 

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