#7 - Netflix (NASDAQ:NFLX)
Netflix Inc. (NASDAQ: NFLX) has been one of the best-performing stocks in 2023 and 2024. Since bottoming out around $177 per share in early 2023, NFLX stock is up approximately 250%. The company has managed to achieve that by its ability to crack down on password sharing without losing customers. That has led to an increase in subscribers to its low-price, ad-supported tier.
The stock scored a double beat on earnings in mid-July and analysts are bidding the stock higher. But NFLX stock is down about 6.5% in July and is now slightly oversold. The concern is that the easy growth is gone, and it will be tougher to continue growing revenue and earnings at the rate of the last 12 to 18 months.
Or can it? After months of being demure about its interest in live sports, Netflix is hosting its “Drive to Survive” live golf event and also announced a $5 billion deal with WWE. However, more than a few heads turned when the NFL announced it would be streaming two games on Christmas Day exclusively on Netflix.
About Netflix
Netflix, Inc provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices.
Read More - Current Price
- $886.81
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 24 Buy Ratings, 9 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $764.82 (13.8% Downside)
Even patient investors must feel like the news is moving faster than our ability to keep up. Buy-and-hold is likely to be a good strategy over time, but it's been a tough way to invest in the past couple of years.
Depending on their timeframe and risk tolerance, many investors seek short-term growth independent of their long-term holdings. But even with this strategy, buy low and sell high remains a sound strategy.
The RSI is a tool that provides one data point for investors to use. However, it's a fast-moving indicator that only captures a moment in time. With the proliferation of high-speed trading, many quality stocks get snapped up quickly when they hit a key momentum indicator.
But as this presentation shows, it's important to understand why a stock may be experiencing heavy selling. There are times when there is a good reason that a stock is oversold. That means even if it bounces higher, it could be better to stay away.
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