News & Analysis / Analysis / Market Analysis: NFLX Price Soars 12% after Strong Report

Market Analysis: NFLX Price Soars 12% after Strong Report

FXOpen

Yesterday's closing price was 345.83, but this morning, NFLX's price rose above USD 390 per share in premarket trading. The reason is a strong report:
→ earnings per share = USD 3.73, expected = USD 3.49;
→ revenue = USD 8.54 billion, a year ago = USD 7.9 billion.
→ the main surprise is that the number of subscribers grew by an impressive 8.76 million in the third quarter (about 6 million were expected). The number of subscribers worldwide is approaching 250 million.

Given the increase in demand for its service, Netflix has decided to raise the price of its basic plan in the US to USD 11.99 per month from USD 9.99, and raise the price of its premium subscription to USD 22.99 per month from USD 19.99. This could attract more earnings per share in the future, which is what has helped NFLX's price soar.

From the technical analysis point of view:
→ NFLX price returns to the ascending channel that was in effect in 2023 and seems to be becoming relevant again. The false breakout pattern could become a support zone in the future.
→ NFLX price exceeded USD 370 per share.

Since early September, NFLX has been a laggard in the NASDAQ index, but after the report it may become one of the leaders. "While we have much work to do to build out this business, we're making good progress and laying the foundation for what we believe should be a multibillion-dollar revenue stream over time," Netflix executives wrote in a letter to shareholders.

Resistance to a powerful bullish impulse may come from:
→ psychological level of USD 400;
→ level at USD 412 – during the summer, the level provided support. But it was broken on September 13-14, and with a bearish gap, which could slow down the rally if the price of NFLX reaches this level. Also note that here is the Fibo resistance level of 50% of the decline A→B.

According to TipRanks, analysts have a target price of USD 454 for NFLX, but given its recent performance, the forecast could be raised.

Buy and sell stocks of the world's biggest publicly-listed companies with CFDs on FXOpen’s trading platform. Open your FXOpen account now or learn more about trading share CFDs with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Instrument
Live ECN bid
Live ECN ask
Action
EURUSD
1.08777
1.08803
Trade
GBPUSD
1.29275
1.29374
Trade
AUDUSD
0.63223
0.63247
Trade
USDJPY
148.620
148.645
Trade
USDCAD
1.43605
1.43721
Trade
More
Share CFD Trading with FXOpen

Share CFD Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Trade with tight spreads
  • Take advantage of low commissions
  • Choose from 4 trading platforms: MT4, MT5, TradingView, or TickTrader
Learn more

Latest articles

Shares

Intel (INTC) Shares Surge by Approximately 14%

As shown in the Intel (INTC) stock chart:

→ Trading opened yesterday with a strong bullish gap.
→ By the end of the session, shares had risen by approximately 14% compared to the previous day's closing price.

According to Dow Jones Market

Commodities

Gold Price Nears $3,000 for the First Time in History

As shown in the XAU/USD chart today, gold is at a record high, just $5 away from the key psychological level of $3,000. Moreover, on the futures market, COMEX data indicates that gold futures have already surpassed this

What Is Dollar-Cost Averaging (DCA) in Investing and Trading?
Trader’s Tools

What Is Dollar-Cost Averaging (DCA) in Investing and Trading?

Dollar-cost averaging (DCA) is a popular strategy used by investors and traders to manage market fluctuations and build positions over time. Instead of trying to time the market, DCA focuses on consistent, regular investments regardless of price movements. This article

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.