Netflix share price crashes through support following Q4 2021 results
The share price of Netflix has seen an aggressive selloff following the groups fourth quarter results release.
A summary of which is as follows:
Revenue $7.71bn (in line with estimates)
Earnings per share of $1.33 (ahead of consensus at $0.80)
Net paid subscriber additions of 8.28m (company guidance from Q3 results was for 8.5m)
While revenue for Q4 2021 was in line with estimates and earnings were ahead of consensus, net paid additions to subscriber numbers fell short of the company’s previously issued guidance. What was perhaps more disconcerting for investors is the soft guidance for Q1 2022 subscriber figures. Netflix is expecting to add only 2.5m paid additions in the new quarter, which is nearly 40% lower than the net additions realized in Q1 2021.
Netflix – Technical View
The share price of Netflix, after breaking trend line support, has come crashing through 469.20 a major low. The move lower ends the long-term uptrend previously assumed.
While the share price has now moved into oversold territory, it remains in decline. 396.50 provides the current major level of support, a break of which (confirmed with a close) sees 317.50 as a possible further downside support target.
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