Netflix Stock Faces Bearish Momentum - Will Q4 Earnings Flip The Script?

Netflix Inc NFLX will be reporting its fourth-quarter earnings on Tuesday. Wall Street expects $4.19 in EPS and $10.11 billion in revenues as the company reports after market hours.

The stock is up 79.33% over the past year, 33.04% over the past six months.

Let’s look at what the charts indicate for Netflix stock and how the stock currently maps against Wall Street estimates.

Read Also: Netflix Gets Boost Ahead Of Q4 Earnings, Analyst Forecasts Net Member Adds Up 57%

NFLX: Stock Faces Bearish Momentum Ahead Of Q4 Earnings 

Chart created using Benzinga Pro

NFLX stock is experiencing strong bearish momentum, with the stock trading below its five-day, 20-day and 50-day exponential moving averages (EMAs), indicating persistent selling pressure. The short-term trend remains weak, as the 20-day simple moving average (SMA) at $881.48 and the 50-day SMA at $875.87 all suggest a bearish outlook, reinforcing the risk of further downside.

Additionally, the Moving Average Convergence Divergence (MACD) indicator stands at a negative 10.67, signaling continued weakness, while the Relative Strength Index (RSI) at 45.94 shows the stock still has room for further declines before a potential rebound.

Despite the current weakness, the eight-day SMA at $851.55 lies right under, and 200-day SMA at $715.29 remains well below the share price of $861.20, indicating that NFLX stock retains long-term bullish support. Investors and traders should watch for potential stabilization around current levels or a deeper pullback. A sustained break below key technical support levels could lead to an extended bearish trend, while any reversal signs, such as a rising RSI or a MACD crossover, could present opportunities for a bullish turnaround.

Netflix Analysts See Downside As Well

Ratings & Consensus Estimates: The consensus analyst rating on Netflix stock stands at a Buy currently with a price target of $870.13. However, the latest ratings from Loop Capital, Seaport Global and Rosenblatt imply a 0.72% downside for Netflix stock, with an average price target of $853.33.

NFLX Price Action: Netflix stock was trading at $860.25 at the time of publication.

Read Next:

• Netflix Analyst Predicts Q4 Subscriber Beat, Cautions On Q1 Guidance: Subs That Joined For NFL, Boxing ‘Could Churn Off’