Netflix Faces Backlash: An Exploration Into Its Controversial $900,000 AI Job Offer Amid A Surprising 12% Stock Plummet

• Netflix has made headlines for its decision to offer a machine learning product manager role with a salary range between $300,000 and $900,000 per year, which has attracted criticism.
• This decision coincides with active strikes by the Screen Actors Guild of America and the Writers Guild of America, both demanding increased wages for their members.
• This controversy comes amidst a significant drop in Netflix's stock value, around 12% since its peak on July 19th, causing additional concerns for the company.

Netflix Inc's NFLX salary offering for a machine learning product manager role, ranging from $300,000 to $900,000 annually, has sparked criticism towards the company.

This decision comes at a time when the Screen Actors Guild of America – American Federation of Television and Radio Artists (SAG-AFTRA) and the Writers Guild of America (WGA) are actively striking to demand higher wages for their members.

Surprisingly, this tumultuous situation is unfolding alongside a notable decrease in Netflix's stock value, which has raised additional worries for the company.

Since reaching its peak on July 19th, the stock has experienced a decline of about 12%. Nonetheless, despite this setback, the stock has achieved an impressive year-to-date gain of 41%, although it is down from its peak increase of 62% earlier in the month.

Despite the earnings per share exceeding expectations at $3.29 compared to the estimated $2.85, the stock unexpectedly experienced a decline the following day.

This unexpected outcome underscores the market’s unpredictable nature and emphasizes the importance of investors exercising caution when responding to earnings news.

However, there is still potential for Netflix's stock despite recent challenges.

The price has fallen back to a significant support level established in June 2018 at $423. Below this level, both the weekly 200-day moving average and the daily 50-day moving average are hovering around $415, which could offer further support.

Moreover, there are signs that the downward trend might be slowing down, as depicted by the emergence of indecision bars. If the buyers regain control, the bullish trend will likely continue.

After the closing bell on Wednesday, July 26, the stock closed at $422.67, trading down by 1.18%.