Netflix looks to be on the right path.
Now I don't want to blow my own trumpet, but I've been a fan of Netflix right at the peak of its international hatred. Right when it was floating around 64.53 on 30th November I said Netflix would rise from the bottom, it would once again be considered one of the first go to companies for film and series streaming.
Why I said this was because of the leadership in the market and industry it has. Steaming of everything is fast becoming the must have thing, the new technology of the world insist's that everything you have created, produced or written is constantly accesible whilst you are mobile or where ever you are located within a building. Now granted the chart above looks bad, well frankly terrible for that colossal drop from $298 a share to $63.86 in a matter of months. But regardless it is now starting to see a rise back in share price, reaching $120.19 on Friday close. The numbers for the company are pretty grim as well, with very little profit if any being project next year, due to worldwide expansion, copyright paperwork etc. But it still has popularity, even though 800,000 subscribers left on news of company spliting into 2 services and a price hike, I would like to know how many have come back with a new alias.
It brings me to the seriously fast market growth for the on demand, streaming television. Netflix is one of the first to offer it wil such a large scale of popularity and content. The market is becoming filled with various companies trying to jump on board, so many its hard to list. The companies range from private small companies to large cable companies that are trying to get into that space. Trouble is their strategies involve trying to punk the subscribers into another package, or another service to get the streaming service. Netflix doesn't do that, it has it's simple monthly fee that everyone can see, they are not being told they need a new car or to have a mass conversion of solar panel systems, they just say you can subscribe and unsubscribe whenever you want. Its the peer pressure to buy other things or you buy this one package but you will always have the burning desire to buy the one up just to say you have it.
Netflix has seen a large number of people trying to put it back down in the market, either they are scared as momentum is growing and they have written some calls or they have shorted the stock and can see that it still remains a strong company. I mean year to date its up 73.46% and thats with having a relentless assualt from various companies and groups of people. It just shrugs it off, everyone said that when another new service is launched Netflix will suffer, it didn't and it won't due to the fact you had to be a paying customer of another service to get the streaming content for free.
I like the company, its growing fast and doing everything right to get the price back up. It may not hit the previous highs for some time but at least its going about it in the right way. Its going to see alot of technical resistance if there happens to be little news like there has been for the passed few months. The main resistance looks like it could be around $129.25 and once passed it will be the 200ma $151.39. The volume has been average for February and March but MACD and RSI are not ready for a sell off, keep watching it as there is alot of room for movement.
Sure Netflix will lose content and contracts but they will fight to get it all back, offering exclusive content is a incredible way to go but also they clearly show they listen to their customers, now that will always bring them back. Im very bullish on $NFLX and will remain to be, it remains quiet and very little is known of the background happenings, much like Apple so this itself makes me excited by the prospects of what the future may have.
I do not have a position in this stock and the ideas and numbers are just of my own opinion.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.