Netflix (NFLX Stock) reports its Q4 2020 earnings today

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.

GBP/USD revisits 1.3530; Dollar pushes harder

GBP/USD adds to the weekly correction and recedes toward the 1.3530 zone on Friday. Indeed, Cable faces increasing selling pressure on the back of extra gains in the Greenback, particularly fuelled by Chair Warsh’s speech at the Jackson Hole Symposium and the US NFP Annual Revision (-79K).

EUR/USD breaches below 1.1600, multi-day lows

EUR/USD now accelerates its decline and retreats to seven-day troughs in the sub-1.1600 region at the end of the week. The pair’s pullback comes on the back of the strong rebound in the US Dollar after Chair Warsh delivered a hawkish message in Jackson Hole, while the US NFP Annual Revision came in at -79K.

Gold challenges its 200-day SMA near $4,530

Gold’s decline gathers fresh steam, hitting weekly lows while disputing its critical 200-day SMA near $4,530 per troy ounce. The yellow metal’s increasing weakness comes in response to the generalised upbeat tone in the US Dollar and the widespread rebound in US Treasury yields, as investors continue to reprice a Fed rate hike in September.

Crypto Today: Bitcoin, Ethereum, XRP rally loses steam despite steady ETF inflows

Bitcoin is back below $80,000 at the time of writing on Friday, after a second attempt at breaking resistance between $81,000 and $82,000. Meanwhile, Ethereum and Ripple mirror Bitcoin’s cooling trend, with ETH sliding to $2,500 and XRP falling toward $1.40 support.

Week ahead – RBNZ and BoC decide on rates ahead of all-important US NFP

Dollar rebounds ahead of ISM PMI and NFP data. RBNZ is expected to raise rates; focus to fall on forward guidance. BoC is set to remain on hold; will it raise rates in 2027?

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.