JUMP REPORT
| Avg Daily Volume: 8,490,778 Market Cap: 123.88B Sector: Services Short Interest: 3.61 |
EARNINGS EXPECTATIONS:
THIS QTR: EPS: 1.04/share REV: 5,250/M
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LAST QTR: EPS: .56/share ACTUAL: .60/share (BEAT)
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NEXT QTR: EPS: .81/share REV: 5,560/M
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FULL YR: EPS: 3.23/share REV: 20,200/M
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*These are the base metrics we will be watching against the actual release numbers
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BEAT/MISS RECORD: 69% OF THE TIME THEY BEAT ESTIMATES
PRIOR ‘JUMP ZONE’ MOVES (LAST 3 QTRS %) -11.62, 2.58, -4.6
EXPECTED JUMP MOVE: 8%
Links To Latest News and Headlines
Subscriber growth continued to decelerate in the second quarter, and Netflix’s third-quarter subscriber forecast is unimpressive, too.
Netflix (NASDAQ: NFLX) investors mostly saw the streaming giant’s second-quarter glass as half empty rather than half full, given Wednesday’s post-earnings stock price pullback of a little more than 3%. There are a couple of noteworthy footnotes to add to the discussion.
Netflix (NASDAQ: NFLX) recently announced mixed financial results for the second quarter of 2021. Revenue of $7.34 billion and subscriber growth of 1.5 million exceeded Wall Street analyst and internal estimates, while earnings per share of $2.97 disappointed. It’s clear that the coronavirus pandemic has caused lumpiness in Netflix’s membership numbers, especially following a monster year in 2020.
Netflix (NASDAQ: NFLX) represents the “N” in the FAANG cohort of top tech companies, which also include Facebook, Amazon, Apple, and Google’s parent company Alphabet. Could Netflix also join the 12-zero club within the next ten years? Netflix has reinvented itself several times since it was founded in 1997.
Jul.23 — Elevation Partners Co-Founder Roger McNamee says Netflix’s subscriber growth is likely to slow, but still sees promise in the streaming giant because it focuses on content. He joins David Westin on “Bloomberg Wall Street Week.”
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ANALYSIS:
StockJumpers trajectory analysis reveals an initial pop up on the news, but then a sell off and the price moves down. The market reaction may be mixed and the metric being watched is new subscribers (domestic and international). Most analysts are bullish… and there is good news but overall we think it will fall by morning.
We are biased SHORT on the event.
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OUR TRADE PLAN:
ENTRY: SELL end of day
STOP LOSS: NA
INITIAL PROFIT TARGET: 8%
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TRADE ASSIST: NO
POST RELEASE ACTION:
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There is a significant amount of data behind the scenes involved in the analysis and trade plan tab above, that does not get put into the report. Too much information for traders often confuses things – so this is striped down to only what it needed to make the best possible decision(s) on trading the trajectory.
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