Netflix stock: buy or sell?
Updated on:
April 6th, 2020
3
Netflix, Inc., an Internet television network, engages in the Internet delivery of television (TV) shows and movies on various Internet-connected screens.
Should I buy Netflix stock?
Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. That's why is so important to define your own trading strategy that matches with your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.Currently, Netflix stock doesn't match any of these trading strategies, so our recommendation is not to buy.
| Buy setup | Elegible |
|---|---|
| New all-time high | No |
| New 52 week high | No |
| Price crossing up 200d MA | No |
| 100d MA crossing up 200d MA | No |
Is Netflix stock a buy?
Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness.
Unfortunately, we couldn't detect any rating for NFLX stock for the last 30 days.Netflix stock analysis
Daily outlook
Shares of Netflix ended today at $379.96 and skyrocketed a dazzling 5.03%.
Shares of Netflix ended today at $379.96 and skyrocketed a dazzling 5.03%. For the last 18 days when NFLX stock price broke up the SMA200d line, it gained $64.49 (20.44%). Since SMA100d and SMA200d crossed up on March 3rd, NFLX price slid a -0.29%. From a daily outlook perspective, NFLX is drawing an uptrend of rising tops and rising bottoms. Since its last top on Tuesday at $383.01, price slid and found support around $357.51. Breaking down under $357.51 would cancel the current uptrend and it might slide further to test lower supports. Note that $383.01 might act as a resistance line. If Netflix breakouts over $383.01 with average or higher volume, this would be a signal that the uptrend resumes.
Weekly outlook
Shares of Netflix skyrocketed a cool 5.03% this week. Early March NFLX collapsed a spooky -9.71% in just one week. Late March NFLX rocketed an astounding 6.80% in just one week. For 3 weeks in a row, price soared and marked a profit of 14.01%.
The downtrend marked by NFLX has left consecutive falling tops and bottoms. There is an opportunity to rebound and reverse this situation if price can hold above the level. Since SMA20w and SMA40w crossed up late February, NFLX price slid a -0.03%. Since mid December 2019 when NFLX stock price broke up the SMA40w line, it gained $81.46 (27.29%).
Netflix stock price history
Netflix stock went public on May 23rd, 2002 with a price of $1.161. Since then, NFLX stock surged a 32,655.20%, with an average of 1,920.90% per year. If you had invested $1,000 in Netflix stock in 2002, it would worth $326,552.00 today.
1: Adjusted price after possible price splits or reverse-splits.
Netflix stock historical price chart
NFLX stock reached 52-week highs on March/3 at $393.52, and all-time highs 2018-06-21 with a price of 423.21.
Netflix stock price target
Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. You should not follow the analysts' NFLX stock price predictions in the hope that they will be met as they may be wrong and not met. For the last 30 days we have not detected any price prediction for Netflix stock by any trusted analyst.Financials and fundamental analysis
Earnings date and Earnings per Share
After presenting its last earnings report on April, Netflix . Unfortunately, reported EPS is not yet available in our database.| Quarter | Reporting date | Estimated EPS | Actual EPS | Surprise |
|---|---|---|---|---|
| 2017-Q2 | - | n/a | 0.15 | n/a |
| 2017-Q3 | 2017-10-16 | 0.32 | 0.29 | -9.4% |
| 2017-Q4 | 2018-01-22 | 0.41 | 0.41 | 0.0% |
| 2018-Q1 | 2018-04-16 | 0.63 | 0.64 | 1.6% |
| 2018-Q2 | 2018-07-16 | 0.8 | 0.85 | 6.2% |
| 2018-Q3 | 2018-10-16 | 0.68 | 0.89 | 30.9% |
| 2018-Q4 | 2019-01-17 | 0.24 | 0.3 | 25.0% |
| 2019-Q1 | 2019-04-15 | 0.57 | n/a | n/a |
| 2019-Q2 | - | n/a | n/a | n/a |
| 2019-Q3 | - | n/a | n/a | n/a |
Annual financial results
Compared to 2017, last anual turnover report draw an outstanding gain of 35.08% to $15,794.30 M USD. When comparing 2018 vs 2017, nevertheless, profit margin (that is, the net income divided by revenues) inched a 2.89% to 7.67%. Netflix presents anual results in December, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Netflix TTM sales up to March 2019 were $16,614.47 and earnings $1,265.17 M USD. When comparing this TTM figures with the last reported annuality, we can esteem Netflix business evolution since December 2018: Annual sales up to March, compared to lastest yearly report, jumped a fine 5.19%. Instead, profit margin (net income/sales) stayed constant at 7.67%.| Year | Sales | YoY | Income/(margin) | YoY |
|---|---|---|---|---|
| 2013 | $4,370 M | - | $112 M2.6% | - |
| 2014 | $5,505 M | 25.96% | $267 M4.8% | 137.37% |
| 2015 | $6,780 M | 23.16% | $123 M1.8% | -54.03% |
| 2016 | $8,831 M | 30.26% | $187 M2.1% | 52.22% |
| 2017 | $11,693 M | 32.41% | $559 M4.8% | 199.41% |
| 2018 | $15,794 M | 35.08% | $1,211 M7.7% | 116.71% |
| TTM | $16,614 M | 5.19% | $1,265 M7.6% | 4.45% |
Quarterly financial results
Netflix posted $4,520.99 million in sales for 2019-Q1, a 7.98% improvement compared to previous quarter. Reported quarter income marked $344.05 million with a profit margin of 7.61%. Profit margin grew a 4.41% compared to previous quarter when profit margin was 3.20%. When comparing turnover to same quarter last year, Netflix sales marked an exceptional increase and climbed a 22.16%. Looking back to recent quarterly results, Netflix posted 7 negative quarters in a row.| Quarter | Sales1 | QoQ2 | Income1/(margin) | QoQ2 |
|---|---|---|---|---|
| 2017-Q2 | $2,790 M | - | $66 M2.4% | - |
| 2017-Q3 | $2,980 M | 6.81% | $130 M4.3% | 97.55% |
| 2017-Q4 | $3,286 M | 10.26% | $186 M5.6% | 43.16% |
| 2018-Q1 | $3,701 M | 12.63% | $290 M7.8% | 56.39% |
| 2018-Q2 | $3,907 M | 5.58% | $384 M9.8% | 32.48% |
| 2018-Q3 | $3,999 M | 2.36% | $403 M10.1% | 4.81% |
| 2018-Q4 | $4,187 M | 4.69% | $134 M3.2% | -66.75% |
| 2019-Q1 | $4,521 M | 7.98% | $344 M7.6% | 156.88% |
Netflix ownership
When you are planning to invest in a stock, it's always worth to check its ownership structure.Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Netflix, 1.62% of all outstanding shares are owned by its staff.
Bearish positions for NFLX stock account 0.00%, no big difference from last month.
The following table compares ownership indicators for other stocks related to Netflix:
| NFLX | |
|---|---|
| Market cap | $166.7 B |
| Total shares | 438.8 M |
| Float shares | 432.7 M |
| - Institutional holdings (%) | 83.0% |
| - Insider holdings (%) | 1.6% |
| Shares in short selling | 0.0% |
Netflix summary
| Monday, April 6th, 2020 | |
|---|---|
| Open | $365.22 |
| Close | $379.96 |
| Day range | $361.71 - $380.29 |
| Previous close | $361.76 |
| Session gain | 5.03% |
| Average true range | $21.15 |
| 50d mov avg | $360.44 |
| 100d mov avg | $339.68 |
| 200d mov avg | $323.05 |
| Daily pattern | lb03a |
| Weekly pattern | lt02a |
Netflix performance
To measure stock performance is always good to benchmark with competitors or related stocks. In the following table, we compare Netflix performance to :| Stock | 3m | 6m | 12m |
|---|---|---|---|
| NFLXNetflix | 15.47% | 34.29% | 8.21% |
Netflix competitors
Unfortunately, we could not find any public company that could be defined as Netflix competitor. This doesn't mean Netflix does not have any competitor in the market, it's just we could not detected it.Latest Netflix stock news
- InvestorPlaceNetflix Stock’s Recovery StumblesAugust 1, 2019
- Seeking AlphaNetflix's New Flex? Profiting Big Off A Better Business ModelAugust 1, 2019
- InvestorPlaceLeaving Netflix in July 2019: 20 Things to Watch Before They GoJuly 26, 2019
- InvestorPlaceNew on Netflix in August 2019: 20 New Netflix Movies to See This MonthJuly 26, 2019
- InvestorPlaceWith Streaming Dominance Ending, Things Look Bleak for Netflix StockJuly 25, 2019