Netflix (NFLX, $217.17) shares drop -37%, on shocking subscriber loss
Shares of Netflix plunged -37% Wednesday morning, after the streaming giant reported a loss in subscriber count Tuesday evening-- for the first time in more than a decade.
On Tuesday, Netflix posted its first quarter earnings of $3.53, well above the $2.89 expected by analysts polled by a Refinitiv survey of analysts.
The company’s revenue rose +10% year-over-year to $7.87 billion in the quarter, vs. $7.93 billion expected according to a Refinitiv survey of analysts.
But what probably surprised markets the most was the streamer’s global paid net subscriber number that registered a loss of -200,000 compared with 2.73 million adds expected, according to StreetAccount estimates.
The company mentioned that the suspension of its service in Russia resulted in a loss of 700,000 subscribers, and that excluding that impact, it would have experienced 500,000 net additions during the quarter.
NFLX in +2.54% Uptrend, growing for three consecutive days on December 24, 2024
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where NFLX advanced for three days, in of 315 cases, the price rose further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 54 cases where NFLX's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on December 24, 2024. You may want to consider a long position or call options on NFLX as a result. In of 83 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 299 cases where NFLX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for NFLX moved out of overbought territory on December 12, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 44 similar instances where the indicator moved out of overbought territory. In of the 44 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Moving Average Convergence Divergence Histogram (MACD) for NFLX turned negative on December 10, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NFLX declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
NFLX broke above its upper Bollinger Band on December 06, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. NFLX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 85, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (12.920) is normal, around the industry mean (5.729). P/E Ratio (51.065) is within average values for comparable stocks, (92.419). Projected Growth (PEG Ratio) (1.889) is also within normal values, averaging (2.987). Dividend Yield (0.000) settles around the average of (0.040) among similar stocks. P/S Ratio (8.190) is also within normal values, averaging (29.638).
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a provider of online movie rental subscription services
Industry MoviesEntertainment