Prior to earnings, the market makers were pricing in a $25 move in either direction. Two levels the chart suggested to pay attention to was the daily supply at $402 and the daily demand at $313.
After earnings, the stock price crated to the downside more than $35 or 10%. The reason price fell that much was because total streaming paid net additions came in at 2.7 million, below expectations of 5.06 million analysts expected. Netflix also lost 126,000 domestic paid subscribers versus an expected gain of 309,000.
The CEO, Reed Hastings attempted to calm investors down call saying the quarter was just a hiccup due to anticipated strong demand for a host of new original content. If you believe in Netflix and what Reed had to say, the price of Netflix is selling at a discount now as the chart suggests to buy at or near the daily demand at $313.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.