Monday, 26 October 2015

NFLX - a second day to the upside

Whilst the broader market saw a day of minor chop, there was notable strength in Netflix (NFLX), settling +3.0% @ $103.05. Near term outlook offers best case to around $110, but then renewed weakness to the 200dma.. which will be around $90 across November.

NFLX, daily


Little to add.

NFLX continues to produce superb product (such as Daredevil.. and the upcoming Jessica Jones).. but the company is simply not making any significant profit.

The recent announcement of a $1 monthly price hike is certainly a step in the right direction, but broadly.. NFLX faces considerable problems.. not least as there is increasingly fierce competition in the online streaming business.

*NFLX would be an interesting long around $90 in November... not least if the broader market has cooled to the sp'2000 threshold.