Netflix stocks drop due to disappointment to subscriber growth: Analyst
Netflix added 2.2 million subscribers, lower than analyst expectations of 3.3 million subscribers for its third quarter results. Bernie McTernan from Rosenblatt Securities joins 'Closing Bell' to discuss. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi
Is it time to press play on Netflix?
With two-thirds of major Wall Street analysts in the bullish camp, according to FactSet, expectations were high heading into the streaming giant’s third-quarter earnings report on Tuesday after the bell.
The results, however, disappointed investors. The company missed estimates on both earnings per share and subscriber growth, with only revenue coming in slightly higher than expected. Shares of Netflix fell nearly 6% in after-hours trading Tuesday in response to the report.
Still, the shares have climbed about 64% this year as stay-at-home orders propelled the company’s subscriber growth amid the coronavirus pandemic. The stock has struggled to push higher in recent months, however, down about 4% since mid-July.
“On a technical basis, the stock is trying or it’s moving up towards this $550 level, which has been unbelievably important resistance all summer long and now into the fall,” Matt Maley, chief market strategist at Miller Tabak, told CNBC’s “Trading Nation” on Tuesday.
Netflix’s stock closed at $525.42 on Tuesday.
“If it can finally break above that 550 level in any kind of meaningful way, it’s going to be very, very bullish,” Maley said, pointing to a chart of the stock.
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