Will Netflix (NFLX) Build on Recent Gains on Strong Q4 Report?

Last Updated: Friday, January 17, 2020 1:39 PM | Michael Fowlkes

What's Happening with NFLX

Streaming giant Netflix (NFLX) will report its fourth quarter numbers after the market close on January 21. Analysts expect the company to post earnings of $0.50 per share, up from $0.30 during the same period last year. The stock has fallen 9.7% since the start of July.

Technical Analysis

NFLX was recently trading at $338.26 down $47.73 from its 12-month high and $85.98 above its 12-month low. InvestorsObserver's Stock Score Report gives NFLX a 46 long-term technical score and a 25 short-term technical score. The stock has recent support above $300 and recent resistance below $360. Of the 28 analysts who cover the stock 16 rate it Strong Buy, 2 rate it Buy, 6 rate it Hold, 0 rate it Sell, and 4 rate it Strong Sell, NFLX gets a score of 44 from InvestorsObserver's Stock Score Report.

Analysts' Thoughts

Netflix stock ran into some trouble last year as concerns mounted over the increased competition in the streaming space with both Apple (AAPL) and Disney (DIS) aggressively entering the market. Both Apple and Disney do have the potential to disrupt the streaming space and Netflix will some of its content to Disney, but neither of the new services appears to be a major threat to Netflix at this point. Netflix dominates the market, and its massive investment in its own original content is a primary reason why the company will be able to withstand new competitors. The stock has risen steadily after hitting a 52-week low in September and barring any negative news in the quarterly report it should continue to erase some of last year's selloff. The street expects a decent earnings beat with a whisper number of $0.58. Analysts see a lot of upside in the stock with an average price target of $375.96.

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