Netflix (NFLX) Gets Crushed And Here Was Our Clue

Jul 18 13:07 2019 Print This Article

Special Note

I'm on vacation this week so I'm writing brief articles and in a different format.  There will be no article tomorrow, Friday, July 19th.

Netflix (NFLX) Hammered In After Hours

Despite topping both revenue and EPS estimates, NFLX is trading lower by nearly 11% this morning as subscribership fell short of expectations.  I'm not shocked at all.  Listen, I subscribe to NFLX and it's a great company with a history of proven growth and it provides a great service at a reasonable cost.  But.....Wall Street wasn't impressed heading into this earnings report so neither was I.  In fact, Mary Ellen McGonagle and I were on MarketWatchers LIVE on StockCharts TV a week or so ago and debated the merits of owning NFLX vs. Walt Disney (DIS).  I chose DIS because of the huge difference in relative strength between the two companies.  Wall Street knows the numbers and then the big investment firms direct their billions of dollars into various companies as earnings season approaches.  If you follow where the money is going on a relative basis, you can get a pretty good sense of where you're likely to see strong numbers.  NFLX wasn't it.  DIS was.  Here are the charts:

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StockCharts.com was founded in 1999 by Chip Anderson, a 10-year veteran of Microsoft. StockCharts.com is a website that provides online investors with high-quality financial charts for making better investing decisions. StockCharts.com is focused on Technical Analysis - the study of price history via charts. They provide award-winning analysis tools, market commentary from respected analysts like John Murphy and Martin Pring, and a huge collection of educational resources that can help anyone become a better, more informed investor.

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