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Is Netflix a Buy Ahead of Earnings? It Looks Like It

Investing.com Logo Investing.com By Sam Quirke
Is Netflix a Buy Ahead of Earnings? It Looks Like It

Netflix stock has fallen 30% from all-time highs due to missed earnings, uncertainty around the Warner Bros. Discovery acquisition, and rising debt concerns. However, technical indicators suggest oversold conditions with RSI at 29 and a bullish MACD crossover. The stock trades at its lowest P/E ratio in years, and analysts from Morgan Stanley and Wolfe Research maintain Buy ratings with $120 price targets, suggesting significant upside from current $90 levels. The article argues much of the downside is already priced in ahead of the upcoming earnings report.

Insights
NFLX   positive

Despite recent 30% decline from highs and October earnings miss, technical indicators show oversold conditions (RSI 29, bullish MACD crossover), valuation is at multi-year lows, and multiple analysts maintain Buy ratings with $120 price targets implying 33% upside from $90. Strong historical track record of beating expectations and much of negative sentiment already priced in ahead of earnings.