Netflix Inc. (NFLX) released Q3 earnings yesterday, that had mixed results compared to analyst expectations but still gave shares a nice pop in the aftermarket on Monday.
The company announced 29 cents per share in earnings on $2.98 billion in revenue while analysts were looking for $2.97 billion. What really impressed investors is the fact that they were able to add 5.3 million new subscribers in the quarter.
They also projected that they will add 4.4 million new subscribers, slightly lower than estimates at 4.5 million.
CEO Comments
“We are growing nicely across the world and are on track to exceed $11 billion in revenue in 2017. Internet entertainment is delighting consumers, and we are staying at the forefront of this once-in-a-generation opportunity.”
‘We added a Q3-record 5.3 million memberships globally (up 49% year-over-year) as we continued tobenefit from strong appetite for our original series and films, as well as the adoption of internetentertainment across the world. Relative to our guidance of 4.4 million net adds, we under-forecastedboth US and international acquisition. Year to date net adds of 15.5 million are up 29% versus last year.” Netflix
Netflix Inc. Chart
Looking at the 30-minute chart above you can see shares were very volatile after earnings hit the wire but were able to settle down and consolidate in the $206 range. Prices peaked in the aftermarket at $211 which marked a 4.1% jump in value, which is actually one of Netflix’s smaller earning jumps.
If you are looking to trade NFLX today make sure to pay attention to some key levels to manage risk. First up will be yesterday’s high at $202.83 followed up by $202 and $200 for major support levels. If it breaks through those then we are looking at $198 and $194 as major support levels.
For resistance, we are looking at aftermarket highs at $211 but if prices break through that then we will have to watch whole and half dollar marks as resistance.
