What’s next for Netflix (NFLX)? Here’s my take. (April 18, 2017)
I want to look at Netflix ( NASDAQ:NFLX ) today. I was watching a Netflix ( NASDAQ:NFLX ) movie last night, The History of Eagles. I have seen it a bunch of times; I kind of thought Don Felder got screwed, but what are you going to do? Anyway, Netflix ( NASDAQ:NFLX ), the company reported earnings and the stock had traded down last night after they reported, then they traded up. It is like the first move is always wrong. I think the idea is that some institutions will be in there trying to bang the stock down to kind of shake the trees and then they take it higher. Anyway, the stock ultimately opened up just slightly above where it closed yesterday and essentially sold off all day long. This 140.00 I think was kind of a bad tick for lack of a better term.
Here is a 1-minute chart and this was the deal here, either that or a big block order. I don’t really care, it doesn’t really matter, but here is what should matter: Right now resistance is up, we can even call it 150.00. So where this stock is right now it is about 5 percent BELOW an all-time high, actually 3.5 percent. But here is the thing, you have got to decide what your time frame is. This stock has been trading sideways, it has been about as boring as, frankly some of the House of Cards episodes. It has been trading sideways for quite a while, just starting to drift up now. I don’t think there is a TRADE here. As an investment, go ahead and take some stock now if you want. But I just know that if the stock does trade below $140.00 you probably don’t want to be long this stock.
For me, I used to be a big Netflix ( NASDAQ:NFLX ) guy when it was moving. But since it has been trading sideways here there have been many days when, actually, when I don’t really look at it. It is not that I don’t like it, it is just that I can’t really make money on it. If you want to talk about whether Amazon ( NASDAQ:AMZN ) is competition for them, etcetera, etcetera, I am not your guy right now, because I just care that the stock is just trading sideways. We know it is already baked into the price of the stock, that Lex Luthor wants to get into the movie business; why not he is into everything else.
This is just simply not a stock that I want to own. I don’t know what the next catalyst would be to take the stock higher. Here is what I am going to do on my own personal software: If this stock starts trading above 150.00, I want to look at this for a year, ‘Buy it now’, if this stock starts trading above 150.00 then I am going to be interested in looking at it again. But for the time being, it seriously is not a place that I want to be.