Netflix NFLX Stock Price, News & Analysis

Such a transaction would be accretive to sales, cash flow and earnings per share for Netflix, while cementing streaming leadership on its dramatically expanded owned-content library. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. 33 Wall Street research analysts have issued “buy,” “hold,” and “sell” ratings for Netflix in the last year. There are currently 1 sell rating, 10 hold ratings and 22 buy ratings for the stock. The consensus among Wall Street research analysts is that investors should “moderate buy” NFLX shares. Alternatively, they can trade a contract for difference (CFD) on a particular stock, and speculate on the price difference of the underlying asset, without actually owning the asset.

676 employees have rated Netflix Chief Executive Officer Reed Hastings on Reed Hastings has an approval rating of 90% among the company’s employees.

  1. This adds a major headwind for the stock to outperform the overall market between now and 2029.
  2. The rating shows how a stock’s price performance stacks up against all other stocks over the last 52 weeks.
  3. To calculate P/E ratio, divide the market value per share by the earnings per share.
  4. Netflix stock has benefited from the cord-cutting trend as people quit traditional pay-TV services.

Rich Smith has no position in any of the stocks mentioned. The latest short interest is 9.97 million, so 2.28% of the outstanding shares have been sold short. The company has a current ratio of 1.29, with a Debt / Equity ratio of 0.65. The next confirmed earnings date is Tuesday, January 23, 2024, after market close. To find the best stocks to buy and watch, check out IBD’s Stock Lists page. More stock ideas can be found on IBD’s Leaderboard, MarketSmith  and SwingTrader platforms.

I rate Netflix a Sell and believe better risk/reward opportunities exist for your investment capital. Taken together, all of these momentum constructs are hinting a major top could be forming in Netflix shares, which might prove the high trades of the New Year. Plus, the Accumulation/Distribution Line and On Balance Volume topped in July (circled in red). A healthy chart would include new ADL and OBV highs with the latest price upmove. This non-confirmation of the bull trend is very concerning.

Why trade Netflix CFDs with

Why not just own T-bills and get 4.7% for a guaranteed yield, in addition to the guaranteed return of 100% your initial investment? If a recession and bear market are next in America, Netflix could decline in value rather rapidly. My rating of NFLX shares has moved between Sell to Buy to Hold over my years writing on Seeking Alpha. While I took the contrarian position of buying shares closer to $200 in April 2022, the current price of $500 is getting on the richer side of the scale for me. You can usually choose to place the order as a limit order or a market order. Market orders, when placed during normal trading hours, are processed immediately at the current price.

Investing is always risky, so there is always a chance the market is going to go against you no matter what you do. Therefore, never invest what you cannot afford to lose, and try to familiarize yourself with some common investment mistakes before placing any trades. That will be crucial for Netflix if it doesn’t want to see its profitability collapse when the ad-supported tier starts up. Netflix has denied reports (from Bloomberg News) that it plans to price ad-supported subscription plans as low as $7 per month.

ROE is an indication of the return Netflix will make on its assets. Expressed as a percentage, ROE is calculated by dividing net income by stakeholder equity. A high ROE could be a possible indicator of undervalued shares.

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Very limited selling volume in January has pushed its reading into negative territory (green arrow). This signal caller should be watched closely into February, because large EMV swings can indicate the start of an oversized short-term price move in either direction. If you bought a position 10 years ago, Netflix has made you considerable investment profits.

Netflix Reports Q4 Earnings Tuesday: Several Catalysts To Watch For The Streaming Stock

Netflix stock has benefited from the cord-cutting trend as people quit traditional pay-TV services. The streaming platform added 5.9mn paying customers as free riders opted to pay for their binge watching. We’d like to share more about how we work and what drives our day-to-day business. Sign-up to receive the latest news and ratings for Netflix and its competitors with MarketBeat’s FREE daily newsletter. In 1997, Netflix was founded in California by Marc Randolph and Reed Hastings. By July 1999, the company had raised $30 million in venture capital, and that September launched its DVD rental monthly subscription concept.

The business is on solid footing, but investors might still be disappointed in the long run.

However, it has an Accumulation/Distribution Rating of C-, indicating tepid interest among institutional investors. In the September quarter, Netflix earned $3.73 a share on sales of $8.54 billion. Analysts had called for earnings of $3.49 a share on sales of $8.54 billion.

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It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Explore the range of markets you can trade – and learn how they work – with IG Academy’s free ’introducing the financial markets’ course. Netflix has rewarded shareholders with solid returns over the past few years, but it still has not paid dividends. It does not look like it will start doing so soon, either – despite rising profits, Netflix still has a lot of debt. Even though shares have skyrocketed in the last decade and a half, Netflix (NFLX 0.57%) hasn’t quite panned out for investors more recently. Please consider this article a first step in your due diligence process.

A target price of $350 to $400 in 12 months makes the most sense to me now. The investment process does not end as soon as you’ve got the stock in your portfolio. Indeed, you must continue to monitor your investment and its performance in the market.

By contrast, limit orders are only processed when the stock reaches a price you set and can be a good choice if you expect the price to drop in the near future. Before investing your money in Netflix or any other stock, you need to do your homework. If you’re going to buy stock, you should know about the company’s fundamentals and ensure it has a business model you think can succeed.