Netflix reports earnings after the bell today.
A key stock in the Fang technology triad,
the stock has risen over 30 % since the Dec.2018 low.
When a stock rises by that much, in a counter-trend rally,
back towards it's all time high above 400,
expectations are seemingly thru the roof for this company
which burns cash faster than most companies could accept in their business model.
Netflix this week raised monthly subscription prices over 10 %,
for it's 79 + Million Subscribers, prior to earnings announcement this afternoon.
I found the timing of that increase to be curious at best
Are they burning cash at such a rapid rate, that they needed to get out front
of their earnings , while the news was still all good ? And I mean all good.
Bottom line here is right now the market is betting on Netflix
to come thru big time with a measurable upside earnings surprise,
and rescue the bulls on the stock for their precinct buying.
However, if one looks at the Chaikin Money Flow Indicator,
( Shown Here ) which measures volume accumulation and distribution,
that's buying and selling big money is clearly SELLING Netflix,
as price continues to rise to the earnings announcement today.
One heck of a divergence, wouldn't you say ?
Interesting. Isn't it ? And just one simple question...
Can a video streaming service,which is cash burning millions of dollars a day,
save this market ?
NFLX 352.67 Last
THE_UNWIND
1/17/19
NEW YORK
A key stock in the Fang technology triad,
the stock has risen over 30 % since the Dec.2018 low.
When a stock rises by that much, in a counter-trend rally,
back towards it's all time high above 400,
expectations are seemingly thru the roof for this company
which burns cash faster than most companies could accept in their business model.
Netflix this week raised monthly subscription prices over 10 %,
for it's 79 + Million Subscribers, prior to earnings announcement this afternoon.
I found the timing of that increase to be curious at best
Are they burning cash at such a rapid rate, that they needed to get out front
of their earnings , while the news was still all good ? And I mean all good.
Bottom line here is right now the market is betting on Netflix
to come thru big time with a measurable upside earnings surprise,
and rescue the bulls on the stock for their precinct buying.
However, if one looks at the Chaikin Money Flow Indicator,
( Shown Here ) which measures volume accumulation and distribution,
that's buying and selling big money is clearly SELLING Netflix,
as price continues to rise to the earnings announcement today.
One heck of a divergence, wouldn't you say ?
Interesting. Isn't it ? And just one simple question...
Can a video streaming service,which is cash burning millions of dollars a day,
save this market ?
NFLX 352.67 Last
THE_UNWIND
1/17/19
NEW YORK