Netflix Bulls Are Winning The Binge — But Is A Plot Twist Coming After Earnings?

Core Viewpoint - Netflix Inc. has experienced significant stock growth, rising nearly 94% over the past year and over 40% year to date, but there are signs of potential turbulence ahead of its upcoming earnings report [1][2]. Financial Expectations - The company is expected to report earnings per share of $7.06 on revenue of $11.04 billion, driven by password-sharing crackdowns, advertising expansion, and a strong content slate [2]. Technical Analysis - Netflix's stock is currently above its five-day, 20-day, and 50-day Exponential Moving Averages (EMAs), indicating a bullish trend, but it is trading below its 8-day and 20-day Simple Moving Averages (SMAs), suggesting potential near-term bearish pressure [3]. - The divergence in moving averages indicates that traders may be taking profits ahead of earnings, possibly anticipating a disappointment or simply cashing in on recent gains [4]. Momentum Indicators - The Moving Average Convergence Divergence (MACD) is at 10.30, indicating strong bullish momentum, while the Relative Strength Index (RSI) is at 51.13, suggesting that the stock is neither overbought nor oversold, allowing for a sharp post-earnings move in either direction [5]. Price Action and Potential Outcomes - Investors are advised to maintain a tight stop as the stock approaches its all-time high of $1,341.15; a strong earnings report could lead to a breakout, while a minor miss might result in a pullback towards the 50-day SMA at $1,225.70 [6].