Streaming Giant Strikes Back - Netflix's Stock Skyrockets 28% Following Last Month's Impressive Earnings Report

  • Netflix's Q3 earnings last month led to a 16% increase in stock price post-announcement and a 28% rise since then.
  • Netflix's stock price faces the $500 psychological resistance and last year's high of $609 as major obstacles.
  • The stock is already up 8% for November, indicating a positive trend.

Netflix Inc's NFLX stock has taken investors on a bumpy ride. Starting strong, the stock experienced a remarkable climb of 62% by July, and edged closer to the $500 milestone.

But then, things quickly changed as the stock's upward trajectory abruptly shifted, and Netflix's stock price took a significant hit, dropping below the significant 200 daily simple moving average at around $370. 

This decline moved down 28%, but there was some relief as the stock found support around the weekly 50 simple moving average, which was approximately $350.

Netflix's Q3 earnings report on October 18th exceeded expectations, with actual earnings of $3.73 compared to an estimated $3.49.

The positive earnings result had an immediate and positive impact on the stock price.

Following the earnings announcement, Netflix's stock opened with a significant 16% increase, clearly indicating the market's positive reception to the report.

Since then, the stock has continued on an upward trajectory, skyrocketing by 28%.

Netflix's impressive earnings report can be largely attributed to its significant subscriber growth, as consistent subscriber expansion is widely regarded as a key indicator of a company's future financial stability and potential for stock value appreciation.

With ongoing growth, Netflix has the potential to see further stock price increases.

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As the stock price continues to rise, several significant barriers lie ahead. The first major obstacle is the psychological threshold of $500.

Looking further ahead, the next target to conquer would be last year's high of $609. Overcoming this milestone would mark a significant achievement for the stock.

Notably, as of November, Netflix's stock has demonstrated robust performance, showing an 8% increase for the month.

After the closing bell on Friday, November 10, the stock closed at $447.24, trading up by 2.78%.

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