Netflix (nflx) Chart Breakout

Discussion in 'Investment Charts' started by longtermbull, Jul 18, 2017.

  1. gowiththeflow

    gowiththeflow Senior Investor

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    Looks like the market reacted badly to the, I presume, after hours Q2 figures. If the company is struggling to hit anywhere near growth targets at this still early stage of the business, that does not bode well for the future.
     
  2. longtermbull

    longtermbull Administrator Staff Member

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    It would appear that some analysts are giving the company a second chance. However, unlike the likes of Tesla which have nine lives, I don’t think Netflix will be afforded such a luxury in the future.
     
  3. Buyonthedips

    Buyonthedips Senior Investor

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    It will be interesting to see whether the market gives Netflix another chance to make good on recent underperformance. It looks as though the $380 level has been a problem in the past and is likely continue to be so for some time to come.
     
  4. gowiththeflow

    gowiththeflow Senior Investor

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    Netflix is profitable, although it has surprised on the downside lately, while Tesla is unprofitable - why is Netflix being hit so hard?
     
  5. Chartman

    Chartman Senior Investor

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    If the markets wobble again then I would expect Netflix to be hit hard. It will get oversold at one point but until we see an improvement in the profits trend it is going to be a high risk investment.
     
  6. Buyonthedips

    Buyonthedips Senior Investor

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    Decent rebound but I fear there is still more downside in the short term - too much uncertainty for my liking.
     
  7. longtermbull

    longtermbull Administrator Staff Member

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    In my experience companies like Netflix, which depend on huge growth in subscriber numbers, rarely get a second chance when things start to go wrong.
     
  8. Buyonthedips

    Buyonthedips Senior Investor

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    Maybe the company will become a bid target at some stage - would it benefit from being part of a larger media company?

    In the absence of takeover speculation I think there is potential for further downside with this one.
     
  9. gowiththeflow

    gowiththeflow Senior Investor

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    I think there will be some takeover speculation at some stage.
     
  10. longtermbull

    longtermbull Administrator Staff Member

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    Isnt it ironic that game changers like Netflix, Tesla and Uber change markets only for others to try and step over them and takeover. As they say, second to market tends to be more successful.
     
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