Netflix Inc. Stock Performance And Technical Analysis
The article takes a look into the recent Netflix stock performance and provides its technical analysis
On Monday, Netflix Inc. stock saw a minor increase during the intra-day trading session as the stock was up 4.84% to $111.25 at market close. The improvement is a good change from September as it declined more than 7% last month. The article evaluates the reason behind the stock split and what shareholders might expect from the stock in the upcoming period.
Since the start of current year, Netflix stock has doubled to $111.25 from $49; the S&P 500 Index has lost more than 4.5% so far this year. The share trades at $146.7% more than its 52 week low of$45.08, and almost 14% less than its 52 week high of $129.29. The streaming giant’s stock has been uneven in September as it touched its 5 week high and also declined more than 7% in the same month against 0.26% gain of S&P 500 Index in the same period.
The increase in the share price was due to the higher than expected subscription figures, while the stock went down sharply followed by the reports that Apple Inc. is entering into a streaming service similar to Netflix.
Apple with its enormous brand name and more than $200 billion in cash is an important threat to the steaming giant. Previously enhance brand reach, plus extensively usage of software like iTunes might limit the expansion plans of Netflix, and grab away a huge market share. Because of which, the streaming company is looking to tap into global markets like Taiwan, South Korea, and Singapore. While, this step looks very risky, as there are already several domestic online content provider in the region like China LeTV.
Shareholders also concerned regarding Netflix’s particularly overvalued share price. The stock price has increased more than 127% during the year, which ultimately result in to the 7 for 1 stock split in July. As the share price has increased to such level, the streaming giant plans to keep the stock volatile via stock split; while it looks like the stock remains highly valued among shareholders.
Netflix stock news reveals that such a share price increase has made majority of sell side analysts to remain bullish on the stock. 45 analysts covered the stock of Netflix, out of those 23 suggested a Buy, while 16 gave it a Hold. These analysts share a consensus stock price target of $117.38, reflecting approximately 5.7% of upside potential against current share price.
Shareholders are recommended to wait for a stock price decline towards $85.52 -75.56 to gather long positions, aiming $119.35 and $154.67.
