Netflix's Market Saga - Navigating Soaring Subscriptions, Unexpected Stock Dips, And The Battle To Breach The $500 Resistance

  • Netflix's subscriber count witnessed a significant growth from 232 million in Q1 to 238 million in Q2 of 2023.
  • Despite better-than-expected Q2 earnings and an increase in subscribers, Netflix's stock price surprisingly fell.
  • This strong level of support triggered a reversal trend, with the stock witnessing an upward push, closing 3.10% higher on the subsequent Monday and marking an overall rise of 47% for 2023.
  • Looking ahead, Netflix faces the challenge of surpassing a high of $485 per share and breaking the psychological resistance at the $500 mark, which could potentially trigger further appreciation in its stock value.

Netflix Inc's NFLX subscriber base continues to soar, reaching a remarkable 238 million in Q2 of 2023, up from 232 million in Q1.

This impressive growth of 6 million subscribers is a testament to the enduring allure of the brand.

While one might expect such remarkable subscriber growth to be reflected in rising stock prices, the market had a different agenda.

Netflix's stock price experienced a decline after reaching its peak of $485 per share on July 19th, following the announcement of an impressive Q2 earnings results.

Despite surpassing estimated earnings with $3.29 per share compared to the expected $2.85, the immediate impact on stock value was not positive.

In fact, the price dropped by a notable 15% before stabilizing at the $423.21 support level, formed from the high of June 2018.

It seemed like the decline was going to continue on a downward trend, however, the $423.21 support level held strong, instilling confidence in the buyers and allowing them to overcome the sellers.

As a result, the stock quickly reversed its downward trend and began moving upwards.

By the end of the following Monday, the stock had risen by 3.10%. Overall, this translates to an impressive 47% increase in Netflix's stock price in 2023 so far.

As Netflix continues its recovery, the next hurdle it faces is surpassing the recent high of $485 per share.

Breaking this barrier will require tackling the formidable psychological resistance level of $500, a challenge that, if successfully overcome, could open the floodgates for further bullish trends.

After the closing bell on Monday, July 31, the stock closed at $438.97, trading up by 3.10%.

Market News and Data brought to you by Benzinga APIs
Posted In: EntertainmentTechnicalsTrading IdeasGeneralcontributorsExpert Ideasstreaming
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!