Netflix Earnings: Will Investors Continue To ‘Netflix & Chill’?

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The world’s leading streaming services and production company NETFLIX (#Netflix) with a market cap of $239.57 billion, is expected to report its fourth quarter 2021 financial results and business outlook Thursday, January 20, 2022 after market close.

The report is prepared for the fiscal quarter ended December 2021. In the third fiscal quarter of 2021, ended March 30,th September 2021 and reported on 19th As of October 2021, the company’s revenue was $7.48 billion and net income was also $1.45 billion for the same period, while earnings per share were 3.19, beating analysts’ forecasts of 2.57/2, surpassed 56.

These numbers were significantly higher than those of the same period in 2020 (Revenue $6.44 billion; Net income of $789.98 million; EPS 1.74). According to a Yahoo Finance survey of 35 analysts, the company’s forecast average earnings estimate is currently $0.82 per share and average revenue is estimated at $7.71 billion.

Investors will be on the lookout for Netflix in Q4thQuarter compared to growth of 4.4 million subscribers in Q3 thanks to the launch of content delayed in the first half of 2021 due to the COVID-19 pandemic.

Also worth noting for investors is the fact that Netflix has underperformed the market (USA500 index) over the past 3 months after falling 15% compared to an 8% rise in the index.

It is also important to note that the content streaming market in the United States is saturated and therefore moving forward Netflix have to compete for subscribers, for example with people like HBO Max which has long been seen as a pacesetter for premium content.

In that regard Netflix The latest move to increase the monthly subscription price by $1-$2 in Canada and the US gives its competitors an edge in the content-streaming business.

Technically, Netflix The price action on the daily time frame chart is trending down and it is trading below the 50 (blue), 20 (red) and 200 (black) simple moving average after hitting a high of $700.20. The ADX is above 25.00, which clearly indicates that the stock price is in a strong downtrend.

Currently, the stock price has found support at the lower trendline of a channel pattern at 511.69. Another downside target can be expected at 505.17 after a major swing low in August last year and then 482.00.

A recovery in price action from these levels will meet resistance at the 200 SMA, while last month’s swing low at 581.18, which acted as support, is likely to become resistance and a break above this level, which appears to be a confluence point with the upper trendline of the channel will act as a sign of a possible reversal of the current downtrend.