Netflix Earnings Report: Wall Street Holds Its Breath

Key Financials: Anticipating Solid Q4 Performance

Netflix Inc NFLX is set to announce its fourth-quarter earnings on Tuesday. Analysts predict earnings per share (EPS) of $4.19 and total revenues of $10.11 billion, with results expected after the market closes.

This year has been favorable for Netflix, with its stock price increasing by 79.33% over the past twelve months and 33.04% in the last six months.

Let’s analyze the current market trends for Netflix and how its stock performance compares to Wall Street’s expectations.

Important Reads: Netflix Prepares for Q4 Earnings, Analysts Forecasting Surge in New Subscribers by 57%

Technical Analysis: Bearish Trends Ahead of Earnings

Chart created using Benzinga Pro

Currently, NFLX stock is showing considerable bearish momentum. It is trading below its five-day, 20-day, and 50-day exponential moving averages (EMAs), a sign of ongoing selling pressure. The short-term outlook looks weak, with the 20-day simple moving average (SMA) at $881.48 and the 50-day SMA at $875.87 indicating further possible declines.

The Moving Average Convergence Divergence (MACD) indicator is at negative 10.67, signaling ongoing weakness. Meanwhile, the Relative Strength Index (RSI) sits at 45.94, suggesting that the stock may decline further before any potential recovery.

However, the eight-day SMA at $851.55 is just below the current price, and the 200-day SMA at $715.29 is significantly lower, which suggests that long-term support remains intact. Investors need to keep an eye on market conditions for signs of stabilization or further downturns. A sustained breach of crucial support levels could result in a significant bearish trend, whereas signs of reversal, such as a rising RSI or a MACD crossover, could present chances for a bullish resurgence.

Analyst Opinions: Caution in the Forecast

Ratings & Consensus Estimates: Currently, the consensus rating for Netflix stock is a “Buy,” with an average price target of $870.13. Nonetheless, the latest assessments from firms like Loop Capital, Seaport Global, and Rosenblatt suggest a minor downside of 0.72%, with an average price target of $853.33.

NFLX Current Price Action: At the time of this report, Netflix shares were trading at $860.25.

Continue Reading: