Netflix Stock Faces Bearish Momentum - Will Q4 Earnings Flip The Script?

Core Insights - Netflix Inc is set to report its fourth-quarter earnings, with Wall Street expecting an EPS of $4.19 and revenues of$10.11 billion, indicating significant market anticipation [1] - The stock has shown a remarkable increase of 79.33% over the past year and 33.04% over the last six months, reflecting strong investor interest [1] Stock Performance and Technical Analysis - NFLX stock is currently facing strong bearish momentum, trading below its five-day, 20-day, and 50-day exponential moving averages, indicating persistent selling pressure [2] - The short-term trend remains weak, with the 20-day simple moving average at $881.48 and the 50-day SMA at$875.87 suggesting a bearish outlook [2] - The Moving Average Convergence Divergence (MACD) indicator is at a negative 10.67, signaling continued weakness, while the Relative Strength Index (RSI) at 45.94 indicates potential for further declines [3] Long-term Support and Potential Trends - Despite current weakness, the eight-day SMA at $851.55 is just below the current price, and the 200-day SMA at$715.29 remains well below the share price of $861.20, indicating long-term bullish support [4] - Investors should monitor for potential stabilization around current levels or a deeper pullback, as a sustained break below key technical support levels could lead to an extended bearish trend [4] Analyst Ratings and Price Targets - The consensus analyst rating for Netflix stock is currently a Buy, with a price target of$870.13 [5] - Recent ratings from Loop Capital, Seaport Global, and Rosenblatt suggest a downside of 0.72%, with an average price target of $853.33 [5] - At the time of publication, Netflix stock was trading at$860.25 [5]