Options Traders Blow Netflix Stock After Earnings Pullback
The streaming giant reported weaker-than-expected quarterly subscriber growth
Netflix Inc. (NASDAQ: NFLX) is in the hot seat this morning, despite a better than expected publication fourth quarter results and income. What’s hurting the business, instead, is weaker-than-expected quarterly subscriber growth, fueling fears that the streaming services’ years of major growth are coming to an end. At last check, the stock is down 23.3% to trade at $389.60, triggering yet another technology clearance sale.
This update is not suitable for the brokerage group, which sounds with a multitude of bear notes. The shares received at least five downgrades, including one to ‘hold’ to ‘buy’ at Truist Securities, and no less than 15 price target cuts, with MoffettNathanson lowering his price target to $375 from 460 $.
This marks a radical shift in sentiment. Today, 21 of 27 analysts covering NFLX called it “buy” or better, while only six said “hold” or worse. Additionally, the 12-month consensus target price of $568.13 represents a 46.7% premium to the stock’s current levels.
Today’s huge bearish gap has Netflix shares trading at their lowest level since April 2020. Shares have fallen since hitting an all-time high of $700.98 on November 17, and earlier this month they lost long-standing 320-day support. moving average. Year over year, NFLX lost 32.1%.
Options traders are also blasting security today. So far, 72,000 calls and 88,000 puts have been traded, 14 times what is typically seen at this point. The most popular is the January 400 put, followed by the 400 call in the same monthly series, with new positions being opened on the latter.