Will NETFLIX surprise investors?

Information is not investment advice

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

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Legal disclaimer: The content of this material is a marketing communication, and not independent investment advice or research. The material is provided as general market information and/or market commentary. Nothing in this material is or should be considered to be legal, financial, investment or other advice on which reliance should be placed. No opinion included in the material constitutes a recommendation by Tradestone Ltd or the author that any particular investment security, transaction or investment strategy is suitable for any specific person. All information is indicative and subject to change without notice and may be out of date at any given time. Neither Tradestone Ltd nor the author of this material shall be responsible for any loss you may incur, either directly or indirectly, arising from any investment based on any information contained herein. You should always seek independent advice suitable to your needs.

FBS Analyst Team

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