$NFLX For the next post, prepare popcorn...
Netflix - opportunity or presumption?
On January 21, Netflix published its financial results for the last quarter of 2021,
The market has not finished punishing the overvaluation in growth stocks, and Netflix immediately crashed by 25%.
Opportunity?
As noted in previous posts, market conditions of the current type usually create opportunities.
Despite the growing competition in the streaming market, which is still considered growing, there are several developments that caught our attention:
1) A few days after the report, the fund of legendary investor Bill Ackman purchased Netflix shares worth $3.1 million, claiming that Netflix at the current price is a long-term opportunity.
2) The next day, Netflix's CEO purchased shares for no less than $20,000,000!
3) Yesterday, Netflix received an upgrade from Citibank to the $450 level due to "being cheap" at these prices.
Let's move on to the technicals and key points:
Netflix went back two years - to the price ranges it was at before the pandemic, and even reached an extreme RSI of 9 last week!
In recent days, growth stocks are surging beyond recognition, and Netflix is among them.
Near-term resistances: $450, $475 and $500.
Near-term supports: $395 and $350.
In addition, Netflix has a "gap" up to a price of $507.
Note: When taking trades in growth stocks these days - skill and proper risk management are required.
The market is still in a non-ideal state, and great caution must be exercised!
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