The global streaming sector has seen impressive growth, due in large part to the continual emergence of digital technologies and ever-increasing Internet penetration. This theme encapsulates a collection of key players from the streaming content providers to software companies, including Netflix (NFLX), Akamai Technologies (AKAM), Baidu (BIDU), Brightcove (BCOV), Roku (ROKU), Bilibili (BILI), iQiyi (IQ), and HUYA.
The Streaming Online Sector Theme
Online streaming stocks span across diverse sub-sectors, including content providers like Netflix, as well as technology firms like Baidu and Sina, which facilitate both content providers and viewers. While these companies are primarily considered part of the communication services sector, software firms fall under the technology sector. The financial performance of these sectors can often hinge on economic conditions, leading to a degree of volatility compared to other sectors.
Positive Trading Signals Across the Board
Technical indicators across these streaming online stocks are hinting at promising bullish trends. For example, the Moving Average Convergence Divergence (MACD) for both AKAM and BCOV turned positive in July 2023, suggesting a 72% and 65% chance of continued upward movement, respectively.
Indications of Bullish Momentum
BIDU and IQ's Aroon Indicator signaled bullish trends on July 17 and July 21, 2023, respectively. The AroonUp green line for both stocks exceeded 70 while the AroonDown red line remained below 30, which traditionally suggests an upcoming bullish move. Historical data support these bullish signals with odds of a higher move at 77% for BIDU and a striking 88% for IQ.
Notable Uptrend for BILI
BILI displayed an exceptional performance with a reported +17.77% uptrend, growing for three consecutive days as of July 31, 2023. Based on similar past performances, the odds of a continued upward trend stand at an encouraging 84%.
The streaming online sector presents a compelling case for investors, boasting a recent 11.9% gain. Though tied to economic conditions, the overwhelmingly positive technical indicators and recent strong performances suggest that these stocks may continue to flourish in the upcoming periods. As always, investors should exercise due diligence and consider their risk tolerance when making investment decisions.
NFLX saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on September 13, 2023. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 49 instances where the indicator turned negative. In of the 49 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
The Momentum Indicator moved below the 0 level on September 13, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on NFLX as a result. In of 84 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
NFLX moved below its 50-day moving average on September 13, 2023 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 September 18, 2023. 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 Aroon Indicator for NFLX entered a downward trend on August 29, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The RSI Indicator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 8 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NFLX advanced for three days, in of 307 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.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 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 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 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 (7.468) is normal, around the industry mean (4.542). P/E Ratio (40.984) is within average values for comparable stocks, (76.069). Projected Growth (PEG Ratio) (1.414) is also within normal values, averaging (1.713). Dividend Yield (0.000) settles around the average of (0.062) among similar stocks. P/S Ratio (5.408) is also within normal values, averaging (110.238).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. NFLX’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of online movie rental subscription services
A.I.dvisor indicates that over the last year, NFLX has been loosely correlated with NWSA. These tickers have moved in lockstep 52% of the time. This A.I.-generated data suggests there is some statistical probability that if NFLX jumps, then NWSA could also see price increases.