Five Star Stock Watch: Netflix, Inc.
In addition to all of the biotech companies, some of the familiar Nasdaq stocks have also been getting hammered as of late -- even the highflying, big guys like Google, Facebook and Amazon.
One in particular worth watching is Netflix. The stock almost tripled last year, so when the profit taking came, Netflix's stock came calling.
Is the stock in trouble yet?
The company: Netflix, Inc.
Ticker Symbol: (Nasdaq: NFLX)
Industry: CATV Systems
Netflix, Inc. provides Internet television network service that enables subscribers to stream TV shows and movies directly on TVs, computers, and mobile devices in the United States and internationally.
The company operates in three segments: Domestic Streaming, International Streaming and Domestic DVD. The company also provides standard definition DVDs and Blu-ray discs to its subscribers in the United States. The company was founded in 1997 and is headquartered in Los Gatos, California.
Please take a look at the one-year chart of Neflix below with added notations:
Anyone that owned Netflix a year ago is pretty happy today, even after the stock's sell-off over the last month.
The stock has now reached its line in the sand if its trend is to stay in tact. Stocks are expected to bounce of trendline supports, and if they don't, usually lower prices follow.
Netflix isn't set to release earnings again until mid to late April.
No matter what your strategy, or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key.
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