Netflix stability after number shock! | newsletter

broadcast service Netflix You reported a subscriber drop of 200,000 in the first quarter of 2022. The first drop in over ten years. Management has already warned shareholders that it expects the number of paid subscribers to fall by 2.1 million in the current quarter. The news hit market participants unexpectedly. The stock price’s reaction was similar to the news. Private and institutional investors have disengaged from the newspaper. The stock certificate lost about a third on the day the quarterly numbers were announced. This means that losses since the highest level last November have exceeded 72 percent!

However, Netflix CEO Reed Hastings has already taken action. Netflix has announced that it will develop a cheaper subscription model with ads. In addition, frequent use of the account by family members and friends should be limited. According to their own data, the number of password users is about 100 million. The plan envisages the ability to create up to two sub-accounts for an additional cost of a few euros. In this way, the number of users will not necessarily increase, but the average revenue can increase. Arithmetic operation can work fine. As the first quarter figures show, the price increases were reflected in increased sales despite the lower number of subscribers.

However, Netflix is ​​still under pressure to invest billions in further growth. Netflix spent about $17 billion on content last year, according to Statista. Experts expect the budget for new films in 2022 to be at a similar level. In addition to producing its own films and series, Netflix is ​​currently developing a second prop. In July 2021, the group announced that it would enter the gaming field. In addition, some smaller game developers have already purchased and games like Stanger Things: 1984 are already available on the Apple Store. The plan is to be able to offer about 50 games to mobile devices by the end of the year. Game business is booming and Netflix can engage with a large number of subscribers.

According to Thomson Reuters, a large number of analysts are optimistic about the stock in the medium term. With around 220 million subscribers, Netflix is ​​one of the largest streaming services in the world. This year, Netflix has been nominated for an Academy Award 27 times, despite only having one trophy at the end. However, the streaming service won seven awards last year. Last but not least, the coronavirus pandemic has sent Netflix & Co. subscribers soaring.

However, high growth rates in recent years have ensured that, in addition to Amazon, competitors such as Amazon, Apple, Warner Brothers Discovery and Walt Disney have long explored the streaming market, bringing movies, series, documentaries, and shows to life. room with a click of the mouse. Aura restrictions are now strict in many places. This means: the broadcast time should be reduced. Given the rising inflation, more and more families are putting their spending on the line. Consumers are rethinking their spending on entertainment, gas and groceries. It’s very easy to give up a streaming service or two when you subscribe to five or six. Many services can be canceled on a monthly basis and are therefore quickly noticeable in the wallet, and Netflix was at the upper end of the price range after the price increase in January.

Hastings must regain confidence first. Due to the uncertainties, high fluctuations in the Netflix share can be expected in the coming weeks.

Chart: Netflix

Resistance Levels: $202.70 / 245.00 / $331.40

Support tag: $165.30

Netflix stock collapsed sharply in mid-April 2022 and is currently still looking for a bottom. With the support level at 202.70 broken out, there is now a threat of a continuation of the downward movement to $165.30 (resistance level from 2017). There are signs of initial stability once the $202.70 mark is crossed again. However, the resistance at $245.00 may turn out to be a difficult obstacle to the upside.

Netflix in US dollars; Daily chart (1 candle = 1 day)

Observation period: December 14, 2020 – April 28, 2022. Historical observations are not reliable indicators of future developments Source: tradingdesk.onemarkets.de

Netflix in US dollars; Daily chart (1 candle = 1 day)

Observation period: 04/29/2016 – 04/28/2022. Historical observations are not reliable indicators of future developments Source: tradingdesk.onemarkets.de

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Reversible on Netflix Stock (Quanto) To speculate that the stock is moving sideways or moderately upwards

latent WKN Issue price Base price
interest rate Final evaluation day
Netflix HVB6ML * 100% ** 80% *** 6.9% per year 10/05-2023
* Subscription period until 05/12/2022 (subject to early closure); ** of the nominal amount; *** x reference price on the date of initial observation; Source: HypoVereinsbank onemarkets; Status: 04/29/2022; 10:30 am

Netflix Bonus Cap Certificate To speculate that the stock is moving sideways or moderately upwards

latent WKN Selling price in EUR barrier in euro Bonus level/cap in EUR Final Observation Day
Netflix HB5N6G * 22.21 150.00 275.00 09/16/2022
Netflix HB5N72 * 19.79 145.00 250.00 16.12.2022
* Quantum Source: HypoVereinsbank onemarkets; Status: 04/29/2022; 10:25 am; additional You can find products on BMW here.

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Netflix Article – Stability After Number Shock! First appeared on onemarkets blog (HypoVereinsbank – UniCredit Bank AG).

Author: Richard Bethenhauer

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