Wednesday, 8 June 2016

NFLX - the once beloved momo stock

Whilst the main market closed a little higher, there was notable weakness in Netflix (NFLX), which settled lower by a significant -2.1% @ $97.83. Price action since the Dec'7th high of $133.27, has been broadly bearish, with the recent low of May 26th marking yet another key lower high.

NFLX, daily

NFLX, monthly


I like NFLX, which continues to produce some of the finest TV ever made.. yet from a pure valuation perspective, its still over-valued - with a 'generous' forward PE in the 90s.

Relative to the main market, it is seriously struggling, with the 200dma now strong resistance just above the psy' level of $100.

If the main market fails to see a major bullish breakout (>sp'2134), and instead implodes this summer/autumn, then downside targets are...

Primary $70
Secondary $50/45.

.. I'd be interested in the $50s.. if sp'1600/1500s. Until then, I'll merely enjoy the show... and leave the stock well alone.