Netflix Inc (NASDAQ: NFLX)
Shares of the popular TV streaming company were trading up in the premarket Monday morning with its Q3 earnings set for release just after the market closes. We should see plenty of activity throughout today and especially tomorrow.
$NFLX is estimated to release 32 cents earnings per share on $2.97 billion in revenues which equates to roughly 27% in revenue growth.
Taking a look at the daily chart above you see the nice run shares have had over the past couple weeks. This is in part due to upgrades from major analyst along with news that $NFLX will be raising their prices for premium users.
Shares will likely be more volatile today as traders and investor position themselves for the earnings announcement so make sure to use hard stops if you are looking to trade it today.
Taking a look at the 30-minute chart above you can see how important of a level $200 has been and will likely continue to be going forward. We also have decent support levels below at $198, $196, $194 with major support down at the $190 level.
Look for resistance at current highs of $202.02 with whole and half dollar marks after that. Expect a lot of volume today and higher than normal volatility. If you are holding a position through earnings make sure to minimize your risk by sizing down because NFLX has been known to be a big mover after earnings.
Netflix, Inc. operates as an Internet subscription service company, which provides subscription service streaming movies and TV episodes over the Internet and sending DVDs by mail. The company operates its business through the following segments: Domestic streaming, International streaming and Domestic DVD.
Netflix obtains content from various studios and other content providers through fixed-fee licenses, revenue sharing agreements and direct purchases. It markets its service through various channels, including online advertising, broad-based media, such as television and radio, as well as various partnerships.
Netflix was founded by Marc Randolph and Wilmot Reed Hastings Jr., on August 29, 1997 and is headquartered in Los Gatos, CA. MarketWatch