Netflix (NFLX) Offering Possible 20.48% Return Over the Next 16 Calendar Days

Netflix's most recent trend suggests a bearish bias. One trading opportunity on Netflix is a Bear Call Spread using a strike $542.50 short call and a strike $547.50 long call offers a potential 20.48% return on risk over the next 16 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $542.50 by expiration. The full premium credit of $0.85 would be kept by the premium seller. The risk of $4.15 would be incurred if the stock rose above the $547.50 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Netflix is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Netflix is bearish.

The RSI indicator is at 59.16 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Netflix

Is Roku Stock A Buy Ahead Of Its Fourth-Quarter Earnings Report?
Tue, 02 Feb 2021 00:00:37 +0000
Streaming video platform Roku is the on-ramp to internet television for many consumers. Investors have taken notice of its key position in the market. But is Roku stock a buy right now?

Netflix meets its match in Nordic minnow Nent
Tue, 02 Feb 2021 00:00:00 +0000
Propelled by the pandemic, the number of subscribers to internet video services in western Europe last year overtook pay-TV customers for the first time. In virtually every corner of the continent, the dominant streaming providers are American. Of the 141m video-on-demand subscriptions in western Europe, some 86 per cent are with US services such as Netflix, Amazon Prime and Disney Plus, according to Ampere Analysis estimates.

2 Movies On The GameStop Drama Are Already In The Works
Mon, 01 Feb 2021 23:25:22 +0000
The story of David versus Goliath turning retail traders against hedge funds has been well covered and documented across the media over the past couple of weeks. The story is so popular that it's already being turned into a book and two movies. What Happened: Two separate movie projects are in the works about the GameStop Corp (NYSE: GME) related stock move that saw retail traders take on hedge funds in a major short squeeze. The first movie deal comes from a book written by Ben Mezrich to be called “The Antisocial Network,” which MGM landed the rights to according to Deadline. Mezrich is a New York Times bestselling author who had had books turned into the movies “The Social Network” about Facebook Inc (NASDAQ: FB) and “21” about M.I.T. students taking on casinos. MGM moved fast to acquire the rights to the book, which will be auctioned to publishers later this month. “The Social Network” producer Michael DeLuca is the new CEO of MGM and was likely part of the push to land the movie rights. Related Link: Better Christmas Present? New Video Game Or GameStop Stock Second Movie: A movie about the influence of social media is coming to Netflix Inc (NASDAQ: NFLX), Deadline reports. The untitled movie comes with Mark Boal in talks to write. Boal is the Oscar-winning screenwriter of “The Hurt Locker” and “Zero Dark Thirty.” While the story of GameStop being a battleground stock for retail traders leveling the playing field versus hedge funds, it might not be the only story covered in the Netflix movie. Other topics like using social media to spread misinformation about the election being rigged and platforms used as ways to unite people to storm the U.S. Capitol were listed by Deadline as movie topics. See more from BenzingaClick here for options trades from BenzingaTrading App Public Ends Payment For Order Flow, Says It'll Generate Revenue With TipsElon Musk Sends Clubhouse Media's Stock Soaring In Case Of Mistaken Identity© 2021 Benzinga does not provide investment advice. All rights reserved.

These 3 Stocks Are Top Picks for 2021, Says BMO
Mon, 01 Feb 2021 23:20:01 +0000
Usually, when markets climb to record levels and stay there, investors start thinking about bubbles. However, Brian Belski, chief investment strategist at BMO Capital, believes that we’re just in the midst of a counter-intuitive time. In a recent note, Belski ruminates at length on the current conditions, and investors’ guesstimates that 1H21 will see a stock bubble. “Widespread speculation of an imminent stock market bubble, not to mention calls for a potential sharp correction in the first half of 2021, only to be followed up by strength during the second half, represents excessively consensus thought by most clients we speak with,” Belski wrote. But here the plot thickens – Belski isn’t sure that the common wisdom has called conditions right: “We believe the first part of 2021 will be much stronger than most investors are imagining.” Belski explains that with the Joe Biden ensconced in the White House, and supported by Democrat majorities in both Houses of Congress, a new corona response stimulus package will likely be larger than expected. Combined with vaccine programs and a solid Q4 earnings season, Belski believes that a cyclical uplift will hit the markets and extend through the year. Against this backdrop, the stock analysts at BMO are taking their cue from Belski, and choosing their top picks for 2021. Using TipRanks’ Stock Comparison tool, we lined up the three alongside each other to get the lowdown on what the near-term holds for these top picks. Tronox, Ltd. (TROX) We will start with Tronox, a mining and specialty metal manufacturing company. Tronox mines titanium ores and zircon, which are used to produce titanium chemicals: titanium dioxide and chemical sands, primarily, which are used in dyes. Tronox products are found in paints, papers, plastics, and other common products. Useful byproducts of the manufacturing process include caustic soda, gypsum, iron sulfate, and various acid compounds. A solid industrial niche, with essential products in a variety of sectors, gives Tronox a firm foundation for growth, and the share value reflects that. The stock rose an impressive 106% over the past 12 months. In Q3, the last reported, Tronox showed $675 million at the top line, up 17% sequentially. Improved market demand, and consequent improved TiO2 (titanium dioxide) sales through the quarter powered the higher revenues. Looking ahead, Tronox has recently issued new Q4 guidance – and these preliminary numbers were far better than expected. For the last quarter of CY20, Tronox is guiding toward revenue of $783 million – which will be a 13.6% year-over-year gain. Based on all that Tronox has going for it, BMO analyst John McNulty tells investors that his bullish thesis remains very much intact. “We listed TROX as one of our top picks for 2021 [based on] our belief that the strength of the cycle would surprise investors in the near term on the volume side and in the intermediate term on the pricing side. The 4Q “blowout” supports our near-term thesis while… recent price hikes give us greater confidence in our intermediate-term thesis as well as our belief that our 2021 and 2022 estimates are solidly too low. We continue to believe TROX offers the most upside of any name in our space looking out through 2021,” McNulty commented. Unsurprisingly, McNulty gives Tronox an Outperform (i.e. Buy) rating, and a $23 price target. This conveys his confidence in TROX's ability to rise 36% over the next twelve months. (To watch McNulty’s track record, click here) What does the rest of the Street think? As it turns out, 3 out of 4 analysts that have published a recent review see the stock as a Buy, making the consensus rating a Strong Buy. Meanwhile, the $19 average price target indicates ~13% upside potential. (See TROX stock analysis on TipRanks) Netflix, Inc. (NFLX) Netflix hardly needs any introduction. It's one of the famous FAANG stocks, a group of tech companies whose sheer size and rate of growth have helped to power the markets over past few years. The FAANGs include Facebook, Amazon, Apple, and Google – so Netflix is in good company, even if its $239 billion market cap puts it in a distant fifth place for size behind its peers. Revenue has grown steadily in every quarter for the past two years, reaching $6.64 billion in 4Q20. That wasn’t the only good news from Q4. The company reported that it had exceeded 200 million paid subscribers in the quarter, and is now looking forward to turning cash flow positive for the first time. On the balance sheet after Q4, Netflix has $15 billion in debt and $8.2 billion in cash on hand. As long as the company turns out hits like ‘The Queen’s Gambit’ and ‘The Midnight Sky,’ which had 68 million and 72 million viewers respectively in their first four weeks, the debt is considered sustainable. Analyst Daniel Salmon, rated 5-stars by TipRanks, rates Netflix as Outperform (i.e. Buy) in his recent note for BMO. Salmon gives the stock a $700 price target, implying an upside of 30% for 2021. (To watch Salmon’s track record, click here) Describing Netflix as a ‘Top Pick’ in his headline, the analyst goes on to say: “We raise our ARPU estimates driven by recent price increases, leading to higher revenue estimates […] While the pricing increases may slow the subscriber growth somewhat, we do not anticipate similar level of churns as in 2019 and think total subs can surprise to the upside in 2021. We think there is another leg as the FCF generation becomes reality, and we continue to like the lack of antitrust/regulatory overhang versus rest of FANG.” There are plenty of Buy ratings for Netflix amongst Salmon's colleagues – 23, in fact. With the addition of 6 Holds and 3 Sell, the stock has a Moderate Buy consensus rating. The average price target stands at 632.90 and implies ~17% upside for the foreseeable future. (See NFLX stock analysis on TipRanks) Corteva (CTVA) The third stock on BMO's top picks list, Corteva, was once the agricultural unit of the chemical giant Dupont, before being spun off as an independent company in mid-2019. The company currently boasts a market cap of $30.3 billion – making it the world’s largest aggrotech company. Corteva fuels its growth through a diverse product line, including seeds, crop protection, and digital land management, all designed to improve crop yields and acre value. Corteva’s seed lines include such staples as corn, wheat, soy, and sorghum – all of which are either eaten directly, shifted into processed foods, or used as livestock feed. Land management is essential to all aspects of farming, at all scales, from wheat farmers to dairy and meat producers. The third calendar quarter is Corteva’s slowest, and Corteva showed year-over-year declines in earnings and revenue. At the same, the 52-cent EPS and the $1.86 billion reported revenue both beat the analyst forecasts. Watching Corteva for BMO, Joel Jackson writes, “Our favorite idea for 2021 is CTVA… There's a strong pathway if 13-14x multiples keep rolling forward to future years as CTVA continues to penetrate deeper into seed traits… we believe 2021 could be a much stronger year for CTVA, which could deliver 20%+ EBITDA growth (we don’t believe this is fully appreciated by the Street although it’s starting to get there). CTVA’s earnings bridge for 2021E could be leaning closer to bull case scenarios as … higher crop prices provide better seed price opportunities (lower rebates), and crop protection sales fare better than expected.” These comments support an Outperform (i.e. Buy) rating, and Salazar’s $48 price target suggests that CTVA has room for a 18% upside in the coming year. (To watch Jackson’s track record, click here) All in all, Corteva’s Moderate Buy analyst consensus rating is based on 8 reviews, breaking down to 5 Buys and 3 Holds. The $43.90 average price target suggests room for ~8% upside growth from the current trading price of $40.71. (See CTVA stock analysis on TipRanks) To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

Google Shuts Down Stadia In-House Game Development
Mon, 01 Feb 2021 21:21:05 +0000
(Bloomberg) — Google is no longer competing with PlayStation and the Xbox, announcing Monday that it’s shutting down the division of Stadia that was dedicated to making exclusive games.“Given our focus on building on the proven technology of Stadia as well as deepening our business partnerships, we’ve decided that we will not be investing further in bringing exclusive content from our internal development team SG&E, beyond any near-term planned games,” Stadia vice president and general manager Phil Harrison said in a statement.Now, rather than try to rival the video game industry’s big players, Stadia will partner with them. Harrison said the division will expand “our efforts to help game developers and publishers take advantage of our platform technology and deliver games directly to their players.” Stadia will continue to provide titles from other developers, but will no longer supplement them with its own slate of games as Google originally planned.Stadia, which launched in November 2019, was an attempt from Alphabet Inc.’s Google to take on the video game console giants with a platform of its own. Unlike traditional consoles, Stadia allows users to play games on devices such as Android phones and Chromecast apps for TV, by funneling data directly from Google’s server clusters. The goal, Google said when it announced the service, was to reach well beyond the audience of traditional gamers and especially penetrate markets such as China and India, where many people cannot easily afford or access a pricey PlayStation from Sony Corp. or Microsoft Corp.’s Xbox.Gaming news site Kotaku earlier reported the reorganization, saying that about 150 people will lose their jobs as part of the plans, which include shutting offices in Montreal and Los Angeles, although Google will try to place them elsewhere. “We’re committed to working with this talented team to find new roles and support them,” Harrison said in the statement.Most players found that Stadia performed well, but the pricing model led to confusion. Rather than package games in a subscription service like Netflix or Xbox Game Pass, Stadia required players to buy individual titles. At launch, users also had to pay for a $130 package to get started. By many accounts the service has underperformed as a result. One former employee said Stadia’s initial sales were well below expectations. Google’s long-term strategy had been to invest in studios to develop games that could only be played on Stadia.As part of the restructuring, veteran executive Jade Raymond, formerly of Electronic Arts Inc. and Ubisoft Entertainment SA, is leaving Google, Harrison said in the statement.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

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