Netflix Stock Soars on Ad Success & Password Rules

Netflix stock marks a record after making an all-time high and closing at the $772 mark on Monday’s session. With rally continuous from the last two trading sessions, delivering returns of nearly 12%.

Quarter-on-quarter stability and growth in earnings, Netflix took over investor sentiments. With earnings of $937.8M in Q4 2023, $2.33B in Q1 2024, $2.15B in Q2 2024, and $2.36B in Q3 2024, stock proved to be result and growth driven. EPS stays strong with a +4.18 estimation, forecasting the profitability and potential returns. Proving the right use of investor’s money by the company.

Netflix: Strategic Moves

With a highly competitive atmosphere in the over-the-top (OTT) industry, strategic moves became the game changer. Introducing games and hosting live events supported the company in diversifying and presenting trending things to its audience.

The introduction of new seasons for the top-viewed shows helped them retain the audience and fulfil their needs. This eventually helped the company increase its engagement level by up to two hours of viewing per member per day. To put the nail on it, there is significant growth in the advertising business, where ads revenue is expected to double year on year in 2025

Netflix Stock: Buy Now For The Big Target Ahead!

NFLX/USD 15-Minute Chart

On a weekly time frame, Netflix Inc. (NASDAQ: NFLX) looks very bullish. However, the first target of round level $800 is not too far away, but it doesn’t fit the risk-to-reward condition. Analysing deep into the technical aspect, historically price is supported on 20 EMA and trend line as shown in the image. The perfect buying opportunity will trigger once the cost comes to take support on either EMA or Trend Line with either hammer candle, marubozu candle, or a strong buyer candle, which will favour the perfect risk-to-reward ratio on investment.

However, people who are already holding the stock from a lower level can peacefully enjoy the rally till the $800 mark. Breaking the support trendline can trigger a trend change in the stock, eventually creating a new decision area for the investors.

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