How to Trade Netflix After Fiscal Q1 2024 Performance Results
The battle among streaming companies continues to deepen with the likes of Netflix, Disney+, Apple+, HBO Max, Amazon Prime Video, and others vying for our business. Learn more about the company that started it all off, Netflix’s fiscal first-quarter 2024 performance and what analysts are forecasting for the stock below.
| Stock: | Netflix Inc. |
| Symbol for Invest.MT5 Account: | NFLX |
| Date of Idea: | 24 June 2024 |
| Time Line: | 1 - 6 months |
| Entry Level: | $692.00 |
| Target Level: | $800.00 |
| Position Size for Invest.MT5 Account: | Max 5% |
| Risk: | High |
- The Invest.MT5 account allows you to buy real stocks and shares from some of the largest stock exchanges in the world.
All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose, as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing.
Netflix Fiscal Q1 2024 Performance
Here are some of the key highlights from the fiscal first-quarter 2024 earnings report from Netflix:
- Earnings per share of $5.28 vs $4.52 expected
- Revenue of $9.37 billion vs $9.28 billion expected
- Total memberships: 269.6 million vs 262.2 million expected
- Net income of $2.33 billion vs $1.30 billion from same time last year
Netflix beat analyst estimates on most metrics. However, this is one of the last looks investors will get of Netflix's quarterly subscriber numbers going forward. They will no longer provide quarterly membership numbers or average revenue per user starting next year.
Moving forward it wants investors to know it is more focused on revenue, operating margin and 'time spent' on their platform instead. The company stated that in their early days, when there was little revenue or profit, membership growth was the strongest indicator of future potential but now that conditions have changed.
They will still announce major subscriber milestones when they are achieved but the focus now is on developing new streams from advertising, password-sharing crackdown and their entry into live sports offerings. Next year, Netflix will stream WWE's Raw after a partnership with TKO Group Holdings.
However, much of the benefit of these new revenue streams may already priced into the stock price. There is a limit on how much it can make from cracking down on password sharing. This was also highlighted in the earnings report which stated that it expects a slower next quarter with its $9.5 billion forecast lower than analyst estimates.
This has also been reflected in more analysts turning to a neutral or hold view on the stock price as highlighted below.
Netflix Stock Forecast - What do the Analysts Say?
According to analysts polled by TipRanks for a Netflix stock forecast in the past 3 months, there are currently 23 buy, 12 hold and 1 sell ratings on the stock. The highest price level for a Netflix stock forecast is $800.00 with the lowest price target at $450.00.
The average price target for a Netflix stock forecast is $659.60.
An Example Trading Idea for the Netflix Stock Price
An example trading idea for the Netflix share price could be as follows:
- Buy the stock on a break above $692.00 to allow for volatility.
- Target just below the highest analyst price target of $800.00.
- Keep your risk small at a maximum of 5% of your total account.
- Time Line = 1 – 6 months
- If you buy 10 Netflix shares:
- If target is reached = $1,080.00 potential profit [($800.00 - $692.00) * 10 shares].
Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, due to the change to 'hold' in some analyst ratings.
Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.
With the Admirals Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in Netflix stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.
However, there is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall!
How to Buy Netflix Stock in 4 Steps
With Admirals, you can buy shares with a low commission of just $0.02 per share and a low minimum commission of just $1 on US stocks.
- Open an account with Admirals to access the dashboard.
- Click on Trade on one of your live or demo accounts to open the web platform.
- Search for your stock in the search window at the top right to view the live price chart.
- Click Create New Order from the bottom of the screen to open the trading ticket.
Click on the banner below to trade Netflix stock today ▼▼▼
Do You See the Netflix Stock Price Moving Differently?
Remember that all analytics and trading ideas are based on the personal view and experience of the author.
If you believe there is a higher chance Netflix share price will move lower, then you can also trade short from a CFD trading account which Admirals also provide.
The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.
This means you can trade long and short to potentially profit from rising and falling stock prices.
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