Daily 4XSetUps - NFLX Rise Despite Fundamental Overvaluation

2024/12/04
Daily 4XSetUps - NFLX Rise Despite Fundamental Overvaluation
“from$ 700 down to $160 and back to $1000 - that seems to be it!
is it all just a matter of time? can it only go up? everybody bullish?”



At a time when nearly half of the companies in the United States have a price-to-earnings (P/E) ratio of less than 22, NFLX , with its 48.7x P/E ratio, could be considered a stock that should be avoided entirely. With earnings growth that exceeds that of most other companies recently, NFLX stock price action has performed relatively well. The P/E ratio is likely so high because investors believe this strong earnings trend will continue. And which, for better or worse, is more or less the reason why NFLX shares were one of the biggest investor favorites in 2024. The share has so far gained over +70%. New record highs have been reached recently, with the streaming pioneer's titles peaking at over $900. In addition to better-than-expected quarterly figures, this was also helped by the friendly market sentiment that has been working against streaming stocks for some time. The fact that NFLX recently had to struggle with technical problems when broadcasting the live boxing event between Mike Tyson and Jake Paul did not have a lasting impact on the positive mood. Analyst Jeffrey Wlodarczak, from Pivotal research, sees even greater potential for Netflix shares than I do. Not only has he raised his price target for Netflix shares to $1,100, but he also expects a realistic scenario in the form of a stock split for the year 2025.

“Time is like a river that carries us forward into encounters with reality that require us to make decisions. We can’t stop our movement down this river and we can’t avoid those encounters. We can only approach them in the best possible way.”
Ray Dalio

$911.06 : 2024/12/04 - last price action
$908.00 : 2024/11/21 - Weekly High of 47th Week 2024
$902.05 : 2024/11/25 - Intraday Open & High Of Bearish Day
$865.59 : 2024/11/25 - Intraday Close Of Red Bearish Day
$864.22 : 2024/11/25 - Intraday Low Of Red Bearish Day
$809.33 : 2024/11/18 - Weekly Low of 47th Week 2024
The price action between 809.33 and or even 908 should turn out to be groundbreaking for the NFLX share. If we want to analyze and evaluate the momentum of the price action between the quarterly reports in order to then make a successful trading decision based on this. Why? Because on these days, throughout the entire calendar week, from Monday, November 18th, 2024 to Friday, November 22nd, 2024, the majority of traders and or investors, the market, have apparently decided that the NFLX still has potential for has a price increase. It is therefore particularly important to defend the price action from 902.05 to 864.22. Because on the following Monday, November 25th, 2024, the share price fell by -3.59%. So that if the price action is above this we can still argue that there is an intact upward trend. What we do - and let this long NFLX 4XSetUp run to the price target.

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$1000.00 : 2025/06/30 - Target Price
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$0911.06 : 2024/12/04 - last price action
$0795.04 : 2024/11/08 - Entry Price
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$0700.00 : 2025/06/30 - Stop Price
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Have a good time
- regardless of the price action!
Aaron



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By trying to give you even more information about some trading capabilities to trade and/or invest in some securities. This post is not a call to action - it only provides information. You decide (not) to decide. Even if I am writing daily 4XSetUps with concrete entry prices, target prices and/or also stop prices! It is like it is - like I said; You decide to respond to the analysis I just formulated to buy, to sell, or to do nothing! More information about my approaches to investing in something specific or just trading it, or even just describing it, can be found in the daily "Another 48h - DXY ...! Analysis Post. Where I try to track the price action in DXY every day so that we learn something new daily.