amit
2026.04.16 22:47

$Netflix(NFLX.US)

Netflix is down for 3 main reasons:

- Reed Hastings (founder) is stepping down from the board. Street doesn’t ever like important leaders leaving.

- Guidance for Q2 EPS missed, $0.78 vs $0.84 expected.

- If you take out the one time $2.8B breakup fee from the Warner Deal that caused EPS to be +60% YoY, they miss EPS by about 2 cents. Not that encouraging.

Overall, great business and it probably just got overextended at $108 given the real move was $70-$95, so this downside move isn’t as serious but definitely not fun for people who just got in.

$Netflix(NFLX.US) is a major retail stock now as it’s a top 10 holding on Robinhood for the first time ever so retail really bought the dip 2 months ago when it fell 30%.

$Netflix(NFLX.US) -9%

Source: amit

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