HotForex Analysis Team
HotForex
Netflix, Inc. (NFLX) – is the world’s largest streaming platform and video content giant. Q4 2020 earnings will be released today (Tuesday, January 19) after the market close, with Zacks expecting a likely return per share of $1.38, down from $1.74 in Q3 for earnings forecast figures. Revenue is expected at $6.6 billion, higher than the $6.43 billion achieved in the third quarter and $1.1 billion higher than the $5.5 billion a year announced earlier in Q4 2019.
After an increase of 26 million active users in the first six months of the year, the figure fell sharply in the third quarter, adding just 2.2 million. In Q4, Netflix expects an additional 6 million subscribers, meaning its subscriber numbers are on track to hit 200 million people.
However, the key question that follows is what is the average income per user member? This is difficult to calculate, because Netflix charges differently for each region. In the US and Canada, the monthly subscription fee is up to $13.40 while the lowest monthly subscription fee in Latin America is $7.27 per month.
In 2021, Netflix plans to produce more than 70 of its own movies, a production output that leaves it almost 50 films ahead of its main rival, Disney+, not to mention traditional filmmakers who still rely on theatres, with many projects and movies postponed or stalled due to the Covid-19 crisis. The outlook from the company will be key.
Technically the share price bounced before the announcement of second-quarter results in July. Netflix’s share price hit a record high of $575 in the summer and has held above $465 ever since, returning to test $575 in early October. As a result, the price is now likely to form a continuation pattern in the bullish flag just above MA200. Therefore, if the fourth quarter results are good, the price may be ready to bounce from the MA200 to test the original high soon. It is also possible that the price could break the MA200 down to test the $465 support zone which would represent a decline of over 6.5% from Friday’s closing price at ($497.98). In early pre-market trades Netflix is up 1.11% at $503.50.
Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.
Recommended content
Editors’ Picks
USD/JPY jumps above 156.00 on BoJ's steady policy
USD/JPY has come under intense buying pressure, surging past 156.00 after the Bank of Japan kept the key rate unchanged but tweaked its policy statement. The BoJ maintained its fiscal year 2024 and 2025 core inflation forecasts, disappointing the Japanese Yen buyers.
AUD/USD consolidates gains above 0.6500 after Australian PPI data
AUD/USD is consolidating gains above 0.6500 in Asian trading on Friday. The pair capitalizes on an annual increase in Australian PPI data. Meanwhile, a softer US Dollar and improving market mood also underpin the Aussie ahead of the US PCE inflation data.
Gold price flatlines as traders look to US PCE Price Index for some meaningful impetus
Gold price lacks any firm intraday direction and is influenced by a combination of diverging forces. The weaker US GDP print and a rise in US inflation benefit the metal amid subdued USD demand. Hawkish Fed expectations cap the upside as traders await the release of the US PCE Price Index.
Stripe looks to bring back crypto payments as stablecoin market cap hits all-time high
Stripe announced on Thursday that it would add support for USDC stablecoin, as the stablecoin market exploded in March, according to reports by Cryptocompare.
US economy: Slower growth with stronger inflation
The US Dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.