<img src=”https://storage.googleapis.com/prod-zenger-upload/image/20230719/feat_0c0bd642-ca41-4fe5-a5bf-701b4356e803.jpg” alt=”Netflix logo on Chromecast menu displayed on a TV screen and Chromecast remote control are seen in this illustration photo taken in Krakow, Poland on July 19, 2023. Netflix, Inc (NASDAQ: NFLX), along with Tesla, will kick off big tech earnings on Tuesday when the streaming entertainment company prints second-quarter financial results after the market close. PHOTO BY JAKUB PORZYCKI/GETTY IMAGES”>
Netflix, Inc (NASDAQ: NFLX), along with Tesla, will kick off big tech earnings on Tuesday when the streaming entertainment company prints second-quarter financial results after the market close.
The stock has been trending higher on the daily time frame since March 13, surging about 66% since that date. On Wednesday, Netflix was climbing slightly north.
When the streaming giant printed its first-quarter results on April 18, the stock dropped about 0.8% the following day before continuing in a fairly consistent uptrend.
For the first quarter, Netflix reported earnings per share of $2.88, beating the Street estimate of $2.86. The company reported revenues of $8.16 billion, which missed the $8.18-billion consensus estimate.
For the second quarter, analysts expect Netflix to report earnings per share of $2.85 on revenues of $8.29 billion. Traders and investors will be watching closely to see how many new subscribers the company was able to add during the quarter.
From a technical analysis perspective, Netflix’s stock looks neutral heading into the event, trading in an inside bar pattern but with its relative strength index trending in overbought territory.
It should be noted that holding stocks or options over an earnings print is akin to gambling because stocks can react bullishly to an earnings miss and bearishly to an earnings beat.
Netflix and Tesla will set the stage for this earnings season and a negative reaction to their earnings print could increase volatility in the stock market. Traders wishing to trade the volatility in the stock market can use MIAX’s SPIKES Volatility products. The products, which are traded on SPIKES Volatility Index (XMIO: SPIKE), track expected volatility in the SPDR S&P 500 over the next 30 days.
Netflix started trading on Wednesday with an inside bar pattern and was attempting to break up from Tuesday’s high-of-day heading into its earnings print. The pattern leans bullish because the stock was trading higher before creating the formation.
Produced in association with Benzinga