Netflix, Inc. is a global leader in the Entertainment industry, operating within the Communication Services sector. As a titan of streaming media, the company commands a significant market capitalization of 397.33 Billion USD. Its business model focuses on subscription-based streaming services, original content production, and global expansion, making it a key stock for investors monitoring consumer discretionary spending and media trends.
Based on our technical scoring system, Netflix currently receives a "Strong Sell" rating with a total score of -4. The primary driver for this bearish outlook is the long-term trend indicator. The current price is significantly below its 200-day simple moving average, contributing a heavily weighted score of -4. This is further supported by a negative MACD histogram, which adds a -1 score for bearish momentum. While the ADX indicates the trend is not yet considered strong and the RSI is nearing oversold territory (both scoring 0), these are not enough to offset the negative signals. A minor positive is the On-Balance Volume (OBV), which suggests some accumulation (+1), but it is insufficient to alter the overwhelmingly bearish technical picture.
In conclusion, the short-term technicals strongly advise caution. This assessment, however, contrasts sharply with some fundamental aspects. The company's last earnings report delivered an astonishing 14795.0% positive EPS surprise on reported earnings of $0.13 per share, indicating powerful underlying performance. The stock's P/E ratio of 39.23 suggests that investors still hold high growth expectations. This creates a classic divergence between a bearish chart and positive fundamental news. Investors should monitor whether the technical downtrend continues or if the strong earnings performance, with the next report due on 20/01/2026, can fuel a reversal.