Blue-Chip Stocks With High-Risk Earnings Reports: Netflix (NFLX)
Scheduled to Report: Monday, July 17 (PM)
Earnings Estimate: 16 cents per share
Revenue Estimate: $2.76 billion
Netflix, Inc. (NASDAQ:NFLX) is actually creeping right up on us, with its report due out Monday after the close.
Every quarter, the market expects the streaming leader to trip, stumble or fall through their report, especially in the subscriber growth matrix. The past two quarters saw NFLX stock rally into its earnings similar to this quarter, which raises some concerns, because this usually results in a post-earnings “sell the news” event.
This quarter, Netflix shares have been tracking sideways, putting the stock in a technical testing ground. Trading just above its 50-day moving average, NFLX is now at risk of seeing real technical selling if its results fail to impress.
Right now, we’re actually bullish on Netflix, because both the charts and sentiment suggest that shares will trend higher over the next six months. But without an impressive report early next week, NFLX could be hit with a real bout of downside volatility.