Netflix shares (NAS100:NFLX) will test the market’s appetite for tech stocks this week.
NFLX – Daily Chart
The price of NFLX has been on the rise from October lows to almost $1,250. The resistance now comes in at $1,267 for further gains. The all-time high at $1,340 is still a distance away.
Netflix releases its earnings on Tuesday after the U.S. market close and that gives traders time to prepare.
During the recent quarter, Netflix continued its high-profile live events strategy, with the Canelo Alvarez-Terrence Crawford boxing match drawing an estimated 41.4 million viewers. Also in August, KPop Demon Hunters set a new record as Netflix’s most-watched film ever, amassing 325 million views.
Netflix earnings were in line with analysts’ revenue expectations last quarter, with revenues of $11 billion, up 15.9% year on year. EPS guidance came in ahead of analysts’ expectations and the company reported 310.6 million users, up 11.9% year on year.
It remains to be seen if a campaign by Elon Musk to “Cancel Netflix” had any meaningful impact. In the current quarter, analysts are expecting Netflix revenue to grow 17.3% over the year to $11.5 billion.
Netflix will have to impress analysts on subscriber numbers to see further gains in the stock. A positive earnings report could boost tech stocks ahead of Musk’s own performance with Tesla earnings.
