The King of Streaming Is Down, But Not Out

shutterstock_13687939371

Shares of
Netflix (NFLX) took a dive in after-hours trading on Tuesday as the company reported earnings. While earnings were fine, subscriber growth slowed to 208 million. That’s up 14 percent from a year before, but it’s also a sign that the boost at the start of the pandemic is starting to wear off.

  • Special: 32,481% Growth: The SmartPhone Startup Outpacing Apple and Samsung
  • Despite the selloff, shares of Netflix were a top media play in the past year, edging out other companies that have also gotten into the streaming space.

    The selloff, based on lower-than-expected subscribers, is nothing new. That metric has become the key for an earnings season win… or miss. With the latest numbers at a miss, the company still expects higher growth rates in the second half of the year.

    • Bill O'Reilly Interviews Wall Street Expert to Help YOU Achieve the American Dream

      "We're going to bring back the American Dream... bigger, better, bolder, richer, safer, and stronger than ever before." - President Donald Trump

      During Trump's first term, 8 million Americans became millionaires despite constant resistance from Democrats and even some Republicans in his cabinet.

      Now, with Republicans controlling both houses and the Fed cutting rates, everything is aligned for even greater growth.

      Bill O'Reilly interviews investment expert Alexander Green who reveals details on 6 stocks with the potential to soar under Trump's pro-business policies.

      Get the Details Right Here

    Meanwhile, the company has a backlog of shows and movies that were delayed during the pandemic.

    These longer-term trends point to a recovery in the share price. The post-earnings slump sent shares to the low $500 range, about midway between the 52-week high and low.
    Action to take: Shares could easily rally 20-25 percent in the next few months coming off the earnings numbers miss. For traders, the September $600 calls, last going for around $25, could deliver high-double digit returns on a rebound well before expiration.

  • Special: The Crypto that Could Replace Visa?
  •  
    Disclosure: The author of this article has no positions in the stock mentioned here, but may make a trade on this company after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

    [wp-post-author image-layout="round"]