Trading Strategies For Netflix Stock Before And After Q4 Earnings
Portfolio Pulse from Melanie Schaffer
Netflix, Inc (NASDAQ:NFLX) is set to release its Q4 earnings after market close on Tuesday. The stock has been trading flat, mirroring the S&P 500's sideways movement. Netflix's Q3 results exceeded expectations, causing a 16% stock surge the next day. Analysts predict Q4 earnings of $2.22 per share on revenues of $8.719 billion. Technical analysis shows Netflix's stock in a neutral position but in an uptrend on the daily chart. Options traders face increased risk due to higher premiums from implied volatility. The Direxion Daily NYSE FANG+ Bull2X Shares (NYSE:FNGG), which includes Netflix as its seventh-largest holding, is an option for traders looking to leverage their position. However, leveraged ETFs are recommended for short-term trading rather than long-term investments.
January 23, 2024 | 7:41 pm
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NEUTRAL IMPACT
FNGG, which seeks to track 200% of the NYSE FANG+ Index's performance, includes Netflix as its seventh-largest holding. The ETF may experience volatility following Netflix's earnings report due to its significant weighting in the fund.
FNGG's performance is partially dependent on Netflix's stock due to its 9.92% weighting. However, as a leveraged ETF with a broader index exposure, the impact of Netflix's earnings may be diluted by other components in the index.
CONFIDENCE 65
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Netflix is anticipated to report Q4 earnings with expectations set at $2.22 EPS on $8.719B revenue. The stock's reaction to the earnings report will be closely watched, as past performance showed a significant surge post-Q3 earnings.
While the Q4 earnings expectations for Netflix are specific, the stock's reaction to earnings can be unpredictable. The historical surge post-Q3 earnings suggests potential for movement, but the neutral technical analysis and the nature of earnings releases introduce uncertainty.
CONFIDENCE 75
IMPORTANCE 90
RELEVANCE 100