Share This Article

Facebook LinkedIn
Twitter Reddit
Print Email
Pinterest Gmail
Yahoo
Money Morning
×
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
  • Retire
    • Income Investing Guide
    • Retirement Articles
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
Login My Member Benefits Archives Research Your Team About Us FAQ
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
    ×
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
    ×
  • Retire
    • Income Investing Guide
    • Retirement Articles
    ×
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    ×
  • Subscribe
Enter stock ticker or keyword
×
5 Ways to Beat the Fed (and Crush Inflation)

Email this Article

Send with mail | ahoo instead.
Required Needs to be a valid email
Required Needs to be a valid email
How to Play Netflix Next Week
https://moneymorning.com/?p=1174859
Required Please enter the correct value.
Twitter
Stocks: NFLX

How to Play Netflix Next Week

By Andrew Keene, Special Contributor, Money Morning • January 23, 2021

Start the conversation

Comment on This Story Click here to cancel reply.

Or to contact Money Morning Customer Service, click here.

Your email address will not be published. Required fields are marked *

Some HTML is OK

If you've been following me for a while, you'll know Netflix Inc. (NASDAQ: NFLX) is one of seven companies I trade every day before breakfast; it's that big and liquid.

And after a dynamite Q4 earnings report, more investors than ever are piling in. The stock is just - only just - off all-time highs.

The thing is, it also only just beat revenue expectations - $6.64 billion against estimates of $6.63 billion. That's good enough for Wall Street. But where Netflix really stood out was in new subscribers; it added 8.51 million new customers versus an expected 6.03 million.

That officially puts Netflix north of 200 million subscribers for the first time ever, and it's proof positive that the October price hike that lots of analysts thought would turn customers off really didn't. We've got the triple-whammy of a cold winter, a pandemic, and spreading lockdowns; viewers are clearly desperate for more content.

Now, like I said, I trade this stock all the time - but here's where I think buy-and-hold investors should come in...

The Stock Has Hit the Top

Netflix absolutely exploded on Wednesday, going up nearly 17% by that afternoon. You can see its five-day chart looks like the start of a very steep cliff, and investors who found themselves at the bottom of it are feeling pretty great right now.

So, if you don't already own Netflix, you're probably asking yourself, "If I get in now, am I topping the stock?"

In a word... yep.

The thing is, the company just saw a massive spike in subscribers - a 41% beat by the Q4 numbers.

Winters don't last forever, and the end of the coronavirus pandemic is at least in sight now. And some of those subscribers will almost certainly drop out.

But a lot of them will be with Netflix for the long haul. That's consistently been the case. Netflix has steadily grown its base to the tune of nearly 1,300% over the past decade.

20X BIGGER THAN BITCOIN: For every $1,000 you could make with Bitcoin, this special trade could make you as much as $20,040 within a year instead. Details...

Netflix is spending a fortune to develop new content for hungry subscribers, and it's promised one new movie a week in 2021. Competition is getting stiff from the likes of HBO Max, Disney +, and CBS All Access - all of which have big hit movies and series on their hands - but the pattern that's played out so far is that if subscribers like what they see in a streaming service, they just add it to the mix without cutting back on existing subscriptions.

All that's great, and I love the stock, but where's your entry point? After all, getting in at these highs, again, isn't necessarily the smart move...

Here's When to Buy

I think we'll get a correction - there's almost always a correction in NFLX. That's your moment to strike.

Netflix has had two sharp drops of more than 10% over the past six months, along with three drops not quite as sharp.

Sentiment on a stock like Netflix can turn on a dime, even if the fundamentals are usually pretty good. Investors tend to return, time and again, to the worry that Netflix is burning through too much cash in its quest to generate more and more content. That worry turns into a 5%, 8%, or 12% drop over the course of a week or so, then investors come to their senses.

There's no reason to believe this time will be any different. In fact, Netflix is already down nearly 2% from its midweek highs - the opportunity may already be shaping up. If Netflix drops another 3% over the next two or three sessions, that's your green light.

Like I said, Netflix is just one of a handful of stocks I trade regularly.

It's all part of my system - it could make for a "recession-proof" portfolio. While a lot of investors watched their money evaporate in 2008, I collected thousands every week, by developing the ultimate indicator. I used it to identify the moves all the big players were quietly making; it helped put me in the know weeks before others caught on.

I'm spilling the beans on all that right here...

Follow Money Morning on Facebook and Twitter.

Join the conversation. Click here to jump to comments…

Andrew KeeneAndrew Keene

About the Author

Browse Andrew's articles | View Andrew's research services

Andrew Keene is a globally known trader and a renowned expert on all things options.

… Read full bio

Login
guest
guest
0 Comments
Inline Feedbacks
View all comments
LIVE
Visit Money Morning Live


Latest News

January 19, 2023 • By Money Morning Stock Research Team

These Stocks Could Go To $0

January 9, 2023 • By Money Morning Stock Research Team

The Government Is Pouring $391 Billion Into These Stocks - Buy Now

December 27, 2022 • By Money Morning Staff Reports

6 IPOs in 2023 You Can’t Afford to Miss
Trending Stories
ABOUT MONEY MORNING

Money Morning gives you access to a team of market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

QUICK LINKS
About Us COVID-19 Announcements How Money Morning Works FAQs Contact Us Search Article Archive Forgot Username/Password Archives Profit Academy Research Your Team Videos Text Messaging Terms of Use
FREE NEWSLETTERS
Total Wealth Research Power Profit Trades Profit Takeover This Is VWAP Penny Hawk Trading Today Midday Momentum Pump Up the Close
PREMIUM SERVICES
Money Map Press Home Money Map Report Fast Fortune Club Weekly Cash Clock Night Trader Microcurrency Trader Hyperdrive Portfolio Rocket Wealth Initiative Extreme Profit Hunters Profit Revolution Warlock's World Penny Nation Quantum Data Profits Live Trading Alliance Trade The Close Inside Money Trader Expiration Trader Vega Burst Trader Flashpoint Trader Darknet Hyper Momentum Trader

© 2023 Money Morning All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning.

Address: 1125 N Charles St. | Baltimore, MD, 21201 | USA | Phone: 888.384.8339 | Disclaimer | Sitemap | Privacy Policy | Whitelist Us | Do Not Sell My Info

wpDiscuz