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As the Earnings date for Netflix approaches, what should you do?

The ways, in which we consume content in today’s environment, it is only a matter of time, before it becomes one of the top sources of revenue for companies. With the easy access to the internet and the World Wide Web, today there is an increase in the popularity of streaming sites for music and videos.
There is a noticeable decline in the usage of TV and TV networks in general, this is due to the fact that with the help of streaming services, you can watch movies and TV shows on the go anywhere you are. The ease of access plays a vital role in the increased popularity of the streaming sites.

The biggest player in the game is Netflix, which is becoming the biggest name in the movie and TV business. The company has a total of 118 million subscribers worldwide, with such whopping numbers it is no wonder it attracts some of the biggest movie stars and companies to come and work on exclusive content. The company posted revenues of over 11.7 billion dollars in the fiscal year of 2017 and with the earnings Netflix approaching soon, it could get a significant investment.

When is the Earnings date for Netflix and how should I plan?


The date has been announced, and it is on the 16th of October. The PMAEA algorithm predicts a whopping 13% expected movement in the stock prices after the earnings announcement. Knowing this figure more accurately just three weeks prior to the announcement date puts you in a unique position to maximize your holdings. On the seventh day, the predicted move is around 15%.

You should strategize in order to get a hold of Netflix stocks on earnings day. Here the volume of trade is also significantly higher. With around 90 million shares being moved around the number is like 5 to 6 times more than any other regular trading day.

The unique PMAEA of Netflix puts it in a special predicament, where even a slight bad news will see overreaction and give up gains, this represents a more downside volatility than an upside one. It also tends to overreact to good news and recover any minor upsets. Also as the projected number is around 13%, this puts the strike price at a huge 26%. This number is improbable to reach and as a result, the stock options are likely to expire as worthless.

The short-term strategy might pay off, but it is highly volatile in a stock such as this. If in any case, the price drops to the strike price, you should waste absolutely no time and purchase it.

You might be wondering how you can just trust the PMAEA

The predicted move after earnings announcement is fairly accurate as it factors in various elements from previous earnings dates and as they tend to follow a pattern, the experts can give a very accurate projection on the movement. But be advised, this is Netflix’s first earnings date and the projections might not be a hundred per cent accurate. 
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