This is the catalyst that Netflix needs to break from its 7 month range

This is the catalyst that Netflix needs to break from its 7 month range

Green could be like the new black.

After tough 2019 for shares of Netflix, which received a 4% average gain over the last six months compared to 15% S&P 500 movement, the giant has now grown considerably, according to two market watchers.

With Netflix's second quarter earning report coming after last Wednesday's clock, the positive result or better than the result could be the stock with a break from its months trading range, says Matt Maley, key equity strategies at Miller Tabak.

"It has been in this area for almost seven months now. And when any stock has been going on for some time now, when it finally breaks that range, it usually sees a powerful move," he said Tuesday. "Trading Nations." This earning report could be a catalyst that goes out of that range finally. "

Moving above the upper end of the range, the level of $ 385, would “support a lot,” Maley said. But if Netflix's second quarter results do not meet expectations, the stock could break down under $ 340, simultaneously with the same level as a 200-day average Netflix movement, he said.

"There is a break below that it will be quite bearish," Maley said. "You have to wait to find out how it breaks out of the range before you can make a definite call. And now, that's where we are."

Netflix shares were slightly lower at $ 365.78 in the trade early on Wednesday.

Mark Tepper, president and CEO of the Strategic Property Partners, said that Netflix was still firm for its strong position in the streaming space.

“We continue to love the long-term growth story,” said Tepper in the same “Trading Nation” interview. “Streaming is not a complete winner space. Some companies have the opportunity to win. The losers are the cable suppliers.

Tepper cited Netflix's record audience for the third season of "Stranger Things," as well as his recent originals of high profile Hollywood talent.

Now, with earnings on deck, "there are three main things on our radar," he said. "No. 1, of course, subscribers. A quarter were slower, but the price increase was. So guidance for over 300,000 additions. [and] 4.7 million international additions. "

The next item on Tepper's list was Netflix's third quarter guide, particularly on what the company called "a very strong material slate" is intended to release.

"The third thing [is] we must hear that its projected free cash flow is reaffirmed – it is staying steady – or it really improves, "said Tepper. So, if it starts again, you will see So we want to see it waiting where it is or coming down, and it is clear that we want to see it towards zero, with a target of free cash flow by 2021 . "

To date the stock is up to almost 37%.

Netflix has been disclosed by Strategic Property Partners.



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