Score 7.7 (out of 10): NETFLIX INC indicates to return +22.5% rally in 3 months

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What’s Going On Here?

NETFLIX is betting big on local productions to draw audiences. In December, the platform will release several new original shows. Going forward, NETFLIX will also release a weekly list of its most-watched programs, providing more visibility for analysts covering the stock. The company has become as valuable as long standing entertainment company Disney.

Why Now?

NETFLIX INC appears to have reached a potential bottom. During similar occasions, NETFLIX INC shares had a median return of +22.5%, over the following 3 months – based on 10 historical occasions with 6 of those showing positive returns (60%). This buy signal for NETFLIX INC received a high score of 7.7 (out of 10). This insight was generated on 2021-December-3 with last price of 616.47.

What’s This Company About?

NETFLIX INC is in the Internet Content-Entmnt business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. ‘Wall Street’ analysts think the stock price will be worth 11% more (average). Ticker symbol: NFLX US.

What’s My Risk / Reward and Time Horizon?

We found 3 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 755.35 (+22.5%) has been reached. Based on NETFLIX INC’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 573.17 (last price at 616.47), which is equivalent to a -7% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ shown under (2), etc. 

Previous episodes:

30% (July-2021), -2.8% (March-2021), 19.2% (March-2020), 25.9% (September-2019), -13.2% (July-2019), 39.3% (December-2018), -0.6% (October-2018), -2.8% (July-2018), 76.5% (December-2017), 31% (September-2016).

Historical Chart:

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Summary:

NameNETFLIX INC
ViewUp
Star (1 to 10)7.7
Target+22.5%
Time3 months
Hit Rate60%

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