News Just In On Netflix (Buy At $72 And Sell At $118)
Key 2026 Bullish Drivers for Netflix:
High Price Targets: Analysts see a 41.2% to 42.1% upside from recent $82-$86 levels, with some high targets reaching up to $138.
Strong Growth Estimates: Earnings per share (EPS) are projected to grow significantly, with a 23.7% increase to $3.13 for the current fiscal year, and continued >20% growth expected for next year.
Advertising & Partnerships: Ad revenue is expected to double in 2026. Strategic discussions regarding potential integration of premium content from partners like Warner Bros could further boost long-term value.
Undervalued Position: Technical analysis suggests the stock has been trading near 52-week lows, with indicators like the Relative Strength Index (RSI) hinting at oversold
Netflix's $72B all-cash bid for Warner Bros Discovery faces reduced regulatory risk after Trump's non-intervention (High correlation). Short-term sentiment boost from cleared political overhang (bullish forum ratio 2:1), but long-term integration risks and funding pressure from cash offer remain key concerns amid current market fear (greed index 45.13).
Trading Highlights
Based on the provided data, including MACD, option volume anomalies, KDJ, RSI, large option orders, and 5-day capital flows, here is a concise summary of the key trend interpretations with strength judgments:
Strong bearish momentum indicated by technical indicators: High correlation with MACD turning negative (e.g., -0.3926 on 2026-02-04) and RSI values consistently below 30 across all periods (e.g., 6-day RSI at 14.47 on 2026-02-03), signaling weakening price strength and oversold conditions without reversal signs.
Elevated bearish sentiment from option activity: Medium-high correlation with high-volume PUT options (e.g., NFLX 20260320 114.0 PUT with 4860 volume and +126.91% predicted price increase) and large orders showing high implied volatility (IV/HV up to 3.6), suggesting speculative bets on downside risk.
Sustained capital outflows reinforcing bearish pressure: Low-medium correlation with net outflows in 4 of 5 days (e.g., -238.11M on 2026-02-03), aligning with technical signals but less extreme than option data.
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