Netflix earnings miss. NFLX reported 4th Quarter December 2020 earnings of $1.19 per share on revenue of $6.6 billion. The consensus earnings estimate was $1.38 per share on revenue of $6.6 billion. The Earnings Whisper number was $1.57 per share. Revenue grew 21.5% on a year-over-year basis. The company said in its shareholders letter it expects first quarter earnings of approximately $2.97 per share on revenue of approximately $7.129 billion. The current consensus earnings estimate is $2.12 per share on revenue of $6.89 billion for the quarter ending March 31, 2021. With that said, the after hours pop of +12% +$60, sure seems fishy to me because the volume isn't behind the price action. Not only does it look like the loch ness monster, for this price to hold tomorrow, would be nearly as rare. I'm thinking a $560 Put at open could be an epic play. I'm not setting this idea in stone, I will respond tomorrow accordingly or simply do nothing. Do your own due diligence, your risk is 100% your responsibility. You win some or you learn some. Consider being charitable with some of your profit to help humankind. Small incremental steps work : If you double a penny a day for a month it = $5,368,709. Good luck and happy trading friends...
Looks like there's going to be fireworks at 9:30am open. Ext trading is strong. Could go either way first 30 minutes. Overnight upgrade from analyst to $700 may be the catalyst for more upward price action. I'll be watching closely to see what the market has to say...
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Holding steady 570ish. Congrats to all that were long!
@AidanMDang, nice chart work. yeah it was some explosive move. I'm thinking call options holders will be liquidating at open for a tremendous profit. This could be a volatile opening. Lol.
bbesinaiz
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I agree on puts tomorrow. Completely unsustainable jump in 20 minutes with relatively small amount of volume. Plus, history on NFLX earnings shows it ALWAYS rips down the days/weeks after the report. Plus, plus, earnings kind of suck for the quarter, breaking even on cash flow is a wash, people going back to work this year...I have considered canceling Netflix myself.
Options360
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@bbesinaiz, I experienced a loss last NFLX earnings. Lol. That's why I passed playing it this time. I'm looking forward to seeing what the market does at 9:30-4 tomorrow. I actually like the service. I'm just saying technically & fundamentally seems lower probability of sustainability like you said.
JustTyrex
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@bbesinaiz, many will stay work from home mutations etc also will they cancel netflix?
Options360
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@JustTyrex, Netflix is my fav streaming app between Disney+ & Prime video. I have them all because I have 3 kids. Lolol.
dougw133pfd
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it does make sense. How many smashed earnings do you see a stock get absolutely wrecked the next day. This market is all outlook. NFLX added 8.5 million users! That demolished estimates and makes this attractive for the future. Streaming servicrs are all about your subscription numbers in this market.
Options360
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@dougw133pfd, I hope you're right. Netflix is my fav streaming app out of Disney, Prime & Netflix. Except Mandalorian is my fav show. We'll see tomorrow. I'm not so sure this price holds up.