Netflix hits $383.42, its lowest rate in 3 months
After ending yesterday at $384.15, the streaming company dropped $2.15 to $383.42, reaching its lowest point in 3 months.
Daily trading volume (5.46 million shares) increased, making up 104% of the 21-day average (5.26 million).
Despite being in the red so far in the current trading session, Netflix peaked above its 3 day Simple Moving Average around $392.3 -- typically an early indicator of a new bullish trend beginning to emerge. Bollinger Bands® shows an indication of recovery: the lower band is at $374.19, a low enough level to, generally, suggest that Netflix is trading below its fair value. Netflix could begin to recover as it approaches significant support, now $4.4 away from $379.75. Dipping below could be an indication that further losses are ahead.
Overall, looking at the technical analysis landscape, although technical indicators are mixed and pointing in different directions, it seems Netflix is set to appreciate despite today's setback.
Netflix was not the only decliner in the communication services sector; Alphabet closed at $131.36 (down 2.4%). AT&T went down to $15.31, losing 1.54% after it closed at $15.55 yesterday. Verizon went down to $33.29, losing 0.92% after it closed at $33.6 yesterday.
Though some indicators look better than others in comparison to previous reports, Netflix's overall fundamentals remain slightly under the industry average.
When analyzing Netflix's indicators the one that stands out as most significant is the company's return on equity (ROE) with a solid 20%. Even though it is now below its trailing twelve-month average of 23%, it is still satisfactory and well above the competition. ROE is a measure of financial performance calculated by dividing net income by shareholders' equity. This ratio gives investors an idea of how well the company handles its shareholders' money. Price to earnings ratio has improved from 593.66 to 41.8, but remains below the industry average.
Fundamental analysis assigns a 'Buy' rating to Netflix.
Having soared to a high of $477.59 approximately 2 months ago, the streaming company is now trading 19.11% lower.
So far in 2023, it has performed better than the Nasdaq by 8.29%.
The streaming company's market cap currently stands at $170.23 billion
daily trading volume (5.46 million shares) was slightly greater than the current multiday average of 5.26 million.
$8.19 billion was Netflix's last reported revenue with $3.29 being the current EPS.