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Netflix bearish tone prevails ahead of earnings

Online-video streaming giant Netflix (NASDAQ: NFLX) is expected to publish its fourth-quarter financial results after the markets close on Thursday, January 20.

Netflix bearish tone prevails ahead of earnings

Online-video streaming giant Netflix (NASDAQ: NFLX) is expected to publish its fourth-quarter financial results after the markets close on Thursday, January 20. The company is expected to post quarterly earnings of $0.84 per share and revenues are expected to be $7.7 billion.

The key area to focus on in the fourth quarter of 2021, the subscriber growth. The company forecasting 8.5 million new streaming subscribers for the last quarter. During the third quarter, the company added approximately 4.4 million new paid streaming memberships and its quarterly revenue increased by 16% year over year to about $7.5 billion.

Netflix recently announced that it has decided to raise the prices of most of its subscription plans in the U.S. and Canada. “We’re updating our prices so that we can continue to offer a wide variety of quality entertainment options” – Netflix said.

$NFLX Technical Review

Netflix stock continues the bearish sentiment ahead of the Q4 earnings call. The stock is down 11% since the beginning of this year and over the last three months, the stock is down more than 20%. The stock reached a record high of $700 on Nov. 11. On Tuesday, the stock closed another 2% lower at $510.

netflix

In the short term, if the bearish momentum continues the next downside target at $500 and $475. On the flip side, the immediate resistance is around $550. if the price holds above $560, the next upside level is to watch $590 and then $620.

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