2022.12.22 Needham analyst Laura Martin maintains support for Netflix (NASDAQ:NFLX) lowered its FY23 EPS forecast to $9.31 from $11.57 and lowered its revenue forecast to $33.4 billion from $35.8 billion. Analysts said in a research note that the company’s peak users may have passed, as churn rates are rising across all OTT providers. Martin added that 57 percent of ad subscription subscriptions in the fourth quarter came from Netflix’s high-priced ads, and the company’s business is under pressure to decline in average revenue per user. Analysts further noted that the FTC’s lawsuit against Microsoft’s acquisition of Activision Blizzard undermined Netflix’s shareholder value because it reduced the likelihood that Netflix would be a target for its acquisition.
Netflix, Inc. (NASDAQ:NFLX) stock trading strategy: 2022.12.23 From the stock technical chart analysis, the recent stock price from the rebound high fall, intraday forced into the 60-day moving average, the possibility of short-term phased bottoming has risen sharply, short-term and mid-term has fallen below the stop price, it is recommended to temporarily leave the market and wait and see, aggressive investors can back the 60-day moving average Bo rebound, it is not recommended to hold positions below the 60-day moving average. From a fundamental point of view, Q3 2022 achieved operating income of US$7.926 billion, YoY + 5.91%, net profit attributable to common shareholders of US$1.398 billion, YoY-3.51%, EPS US$3.1. The company’s stock price is basically speculation expectations, the fluctuation range is large, it is recommended to use technical strategy as the main trading indicator. Whether it is a short or medium term, it is necessary to configure a stop loss level, and the minimum recommended stop loss level is currently $265. From the perspective of stock price fluctuations, there is no long-term profit space for the time being.
Historical Forecast Record:
2022.12.14 From the stock technical chart analysis, the recent stock price is in the mid-line level of the uptrend, although the plate selling pressure began to be very obvious, but for the time being, there are no signs of weakness, short-term trading and medium-term trading recommended back to the 20 moving average high selling low absorption, stop loss price 20-day moving average, can be covered according to the situation.
2022.12.09 From the stock technical chart analysis, the recent stock price is in the mid-level uptrend, there are no signs of weakness for the time being, short-term trading and medium-term trading are recommended to back the 20 moving average high selling low absorption, stop loss price 20-day moving average, can be covered according to the situation.
2022.10.28 From the technical chart, benefiting from the financial report exceeding expectations, the stock price has risen sharply recently, it is recommended that the mid-term trading move the stop loss to $265, without covering back, and the short-term trading is backed by $280 to sell high and low and not make up. At present, the long-term value of the stock price is difficult to judge.
2021.10.20 From the technical chart, the stock price is in an uptrend, it is recommended to hold long positions above the 20-day moving average for short-term trading, and long positions above the 60-day moving average for medium and long-term trading, which is extremely likely to strengthen further. In the order of exits, short-term trading stock prices fell below the 20-day moving average and turned short, and medium and long-term trading fell below the 60-day moving average to turn short. From a fundamental point of view, although the stock price is more expensive, but the logic of rapid growth exists, the price of bears is very large, you can not participate, but do not short.
2021.9.13 From the technical chart, the stock price broke through strongly again, it is recommended to hold long orders above the 10-day moving average, if it falls below the 10-day moving average, the long order avoids, and after standing firm again, the long order enters the holding again. From a fundamental point of view, there is a large premium between the stock price and the company’s performance, and investors should pay attention to the risk of chasing higher. When the stock price falls significantly, consider stop-loss trading.
Key Quote Data:
52 Week Range: 162.71-620.61
P/E Ratio(TTM): 26.42
EPS(TTM): $11.16
Market Cap: $1319.27B
Numbers of employees: 11300 historical data 9400
Summary of recent financial statements
2022.10.18 In fiscal 2022, Q3 achieved Revenue of US$7.926 billion, YoY+5.91%, net income of US$1.398 billion, YoY-3.51%, and EPS of US$3.1. Q3 2022 revenue was US$7.926 billion, a year-on-year increase of 5.9%, and the market expected US$7.85 billion; Diluted earnings per share were $3.10, down 2.8% year-over-year versus market expectations of $2.12. Operating profit was US$1.53 billion, down 13% year-on-year, and the market expected US$1.26 billion; Operating margin was 19.3%, compared to 23.5% in the year-ago quarter, compared to market expectations of 15.9%. Net growth of 2.41 million paid streaming subscribers worldwide, exceeding previous expectations and market expectations of 1 million; As of the third quarter, the total number of paid streaming users was 223.09 million, a year-on-year increase of 4.5%, and the market expected 221.7 million. In addition, a net increase of 4.5 million paid subscribers is expected in the fourth quarter, compared with market expectations of 3.9 million.
Consolidated Statements of Operations
Netflix, Inc provides entertainment services. It offers TV series, documentaries, feature films, and mobile games across various genres and languages. The company provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, television set-top boxes, and mobile devices.