Netflix extended higher through April on the back of strong Q1 earnings, resilient pricing power, and traction in the ad-supported tier. That rally ran into valuation concerns by June, with analyst downgrades and questions over subscriber momentum, margin durability, and execution on the ad strategy.
Technically, the stock has since carved out a descending channel. The latest breakdown from a corrective bear flag pattern points to risk of continuation toward the channel’s lower bound. This aligns with the broader scepticism around growth visibility and rising content costs, leaving the market reluctant to re-rate the stock higher at this stage.
Technically, the stock has since carved out a descending channel. The latest breakdown from a corrective bear flag pattern points to risk of continuation toward the channel’s lower bound. This aligns with the broader scepticism around growth visibility and rising content costs, leaving the market reluctant to re-rate the stock higher at this stage.
Trading leveraged products carries a high level of risk and may result in losses exceeding your initial investment; ensure you fully understand the risks involved.
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Use your TradingView charts to trade your Alchemy account: bit.ly/42vUfjL
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Use your TradingView charts to trade your Alchemy account: bit.ly/42vUfjL
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Trading leveraged products carries a high level of risk and may result in losses exceeding your initial investment; ensure you fully understand the risks involved.
-
Use your TradingView charts to trade your Alchemy account: bit.ly/42vUfjL
-
Use your TradingView charts to trade your Alchemy account: bit.ly/42vUfjL
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.