Netflix earnings to be released after the close. What are the technicals saying?

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Netflix will announce earnings after the close. The expectations are for:

• Earnings Per Share (EPS): Expected at $4.52.
• Revenue: Forecasted at $9.28 billion.
• Total Memberships: Anticipated to reach 264.21 million.

Netflix is transitioning from targeting subscription growth to a profit prioritizing model. As such they have announced price hikes: enforcing their password sharing policies. There also exploring ad supported subscriptions, video gaming, and broadcasting live sports.

Netflix shares are trading down 2 dollars or -0.32% at $611.72 going into the earnings. The price at the end of 2023 was $486.88. The price is up in around 25% for the year. Its all-time high price reached $700.99 back in November 2021. The high price this year has come in at $639..

In 2023 the stock price rose 65.11%.

Looking at the daily chart below, the price is going into earnings after testing trendline support AND its 50-day moving average today (black MA line). A move below those levels opens the door for more downside corrective probing. The 38.2% comes in at $571.33. A move to that level would imply a -6.5% decline from current levels. On a move higher, traders would be looking for the high from the year at $639. That would imply a gain of around 4.35% from current levels.