Netflix Inc. shares fell Tuesday, after analysts at Needham & Company lowered their rating on the stock.
Needham analyst Laura Martin cut her rating on the video streaming company’s shares to "underperform", from "hold". Martin indicated that heated competition in the online streaming industry could cause Netflix to lose as many as 4 million of its 60.6 million U.S. subscribers next year in its premium pricing tier of between $9 and $16 per month.
According to Martin, Netflix would likely have to offer lower-priced options, alongside its premium tier, in order to compete better with other streaming platforms like those from Walt Disney Co, Viacom, Comcast and Apple - all of which offer a net price bracket of between $5 and $7 per month.
NFLX's Aroon Indicator triggered a bullish signal on April 17, 2024. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 286 similar instances where the Aroon Indicator showed a similar pattern. In of the 286 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where NFLX's RSI Oscillator exited the oversold zone, of 23 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 60 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 May 03, 2024. You may want to consider a long position or call options on NFLX as a result. In of 85 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NFLX advanced for three days, in of 314 cases, the price rose further within the following month. The odds of a continued upward trend are .
NFLX may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
NFLX moved below its 50-day moving average on April 19, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for NFLX crossed bearishly below the 50-day moving average on April 23, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating 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 Price Growth Rating for this company is (best 1 - 100 worst), indicating steady 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 Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock slightly better than average.
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 (5.464). P/E Ratio (51.065) is within average values for comparable stocks, (87.119). Projected Growth (PEG Ratio) (1.889) is also within normal values, averaging (2.822). NFLX has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.040). P/S Ratio (8.190) is also within normal values, averaging (28.528).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of online movie rental subscription services
Industry MoviesEntertainment