Wednesday, 6 July 2016

NFLX - headed broadly lower

Whilst the main market closed moderately mixed, there was notable weakness in Netflix (NFLX), which settled lower by -3.4% @ $94.59. Near term outlook offers weakness to the Feb' low of $79.95, with a broader bearish target of $70.

NFLX, daily

NFLX, monthly


Suffice to add, mainstream sentiment is increasingly frustrated with NFLX.

With the BREXIT, and related EU weakness, there is serious concern that the European market will mean rev/profits will be impacted into 2017.

From a pure price perspective, NFLX looks headed for $70. If the main market implodes to the sp'1600s or lower, than $50/45.

To be clear, NFLX is producing some of the finest TV shows ever made, but from a valuation perspective, its simply over-priced, with a forward PE pretty close to 100.