Netflix Earnings Preview: Key Insights for Investors and Market Impact

As Netflix prepares to release its earnings after the market closes today, its stock performance is drawing significant attention. Currently trading at $862.10 per share, Netflix has pulled back approximately 8% from its all-time highs. Despite this dip, a review of the weekly chart shows that the upward trend remains intact, with the price holding above a key trendline support established in October 2023.

Key Support and Resistance Levels

• Primary Support: $816.18
• Trendline Support: $760
• Potential Downside: A break below $760 could trigger broader concerns, potentially leading to a deeper sell-off in the range of $690–$700 per share.

The outcome of Netflix's earnings will not only impact its stock but may also influence the broader tech sector, as several other big tech companies are slated to report earnings next week.

What Could Happen Post-Earnings?

• Bullish Scenario: A positive earnings report and optimistic outlook could stabilise Netflix’s price. This would provide investors with confidence while awaiting further updates from other major tech companies.
• Bearish Scenario: A disappointing report or outlook could result in a break below the $760 trendline support, leading to a steeper decline.

Technical Indicators: Mixed Signals

• MACD: The Moving Average Convergence Divergence (MACD) has crossed below its signal line, indicating potential near-term weakness. This could weigh further on Netflix’s stock price.
• Stochastic Oscillator: The stock appears to be in oversold territory, suggesting that a rebound may be on the horizon if buyers step in.

Analyst Sentiment and Market Expectations

Wall Street analysts remain cautiously optimistic about Netflix’s earnings. With the stock showing mixed technical signals and key support levels in focus, today's earnings report will be critical in shaping investor sentiment not just for Netflix, but for the broader US tech sector.