Netflix’s Third Quarter: Eyes on Earnings as Stock Shows Mixed Signals

Looking Ahead: Earnings Projections for Netflix

Netflix Inc NFLX is set to release its earnings report for the third quarter on Thursday. Analysts predict an earnings per share (EPS) of $5.12 and anticipated revenues of $9.77 billion, with the announcement coming after the market closes.

In the past year, Netflix’s stock has experienced a remarkable rise of 95.12%, with a year-to-date gain of 50.27%.

Let’s take a closer look at Netflix’s stock performance leading up to this earnings report and see how it lines up with Wall Street’s expectations.

Current Stock Trends: Bearish Short-Term, Bullish Long-Term

The technical indicators for Netflix stock present a complex picture. Currently, the stock trend appears moderately bearish as it faces some selling pressure.

Chart created using Benzinga Pro

At a price of $699.27, Netflix stock is currently trading below its eight-day and 20-day simple moving averages (SMA) of $715.31 and $712.44, indicating a short-term bearish trend.

Contrastingly, the long-term indicators offer a more optimistic view. The 50-day SMA stands at $690.78, and the 200-day SMA is at $625.54, both suggesting a bullish outlook for Netflix.

Chart created using Benzinga Pro

The Moving Average Convergence Divergence (MACD) is currently at 6.06, which supports a bullish thesis. Additionally, the Relative Strength Index (RSI), measuring 47.08, shows the stock is neither overbought nor oversold.

Netflix remains within the Bollinger Bands range of $687.03 to $731.08, currently trading in the lower band. Historically, the stock has often traded in the upper band. If the upcoming earnings report exceeds expectations, it could push the stock back into the bullish upper range.

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Analysts Show Confidence in Netflix Despite Limited Growth Expectations

Analyst Ratings and Price Predictions: The consensus among analysts is to “buy” Netflix stock, with a target price of $720.50. Recently, firms like Loop Capital, Benchmark, and Guggenheim provided updated ratings in mid-October, with an average price target of $718.33, suggesting a potential 2.03% increase in the stock’s value.

Current Price Action: At the time of this report, Netflix’s stock was down 0.53%, trading at $702.24.

Looking Ahead:

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