Watching Netflix

Of the many companies reporting after today’s close, by far the sexiest and most-watched is going to be NFLX.

Netflix is one of those companies that tends to move rather violently, as past price action has illustrated over many quarters:

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But let’s look at the here and now. NFLX has soared over 50% higher in just three weeks (!!!!!!), driven in part by its recent subscription increase. It seems hard to imagine there’s much juice left in this orange although, looking at recent earnings, it does tend to gap higher.

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Looking at the larger picture, the stock has been in a historic uptrend for years and years, although let’s face it, it’s fairly richly-priced within the confines of this channel.

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A look at the Slope Reaction Graph illustrates how recent history tends to suggest a decent bump higher – – certainly not the insane up and down moves of a few years ago.

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I am taking no position in this beast, although I will be watching it with great interest this afternoon.

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