Netflix is cancelled

Back in July 2023 NFLX on earnings did a weekly price Spike across a major 50% Retracement level. I entered into a short trade on the stock which worked well for a few months until the market turned decidedly bullish in October and then the trade stopped out. The recent earnings pushed the stock price higher as Netflix net income is dramatically higher than it was last year.

In the meantime I switched my cell phone carrier to T-Mobile and with the unlimited data package (that I need as my backup Internet for trading) it included "free" Netflix. Fine, I'll setup an account, but I will name my profile what I named it...

Neflix content has declined in quality dramatically over recent years as intellectual property owners have rescinded or let expire their content deals to put them on their own platforms. There are also certain... ideological... leanings of Netflix content that I will not expand upon. Either way, my feelings about a company I try to avoid trading upon... because as we can see in this example one's feelings do not translate to good trades alone.

However, in addition to lackluster content a change in their rate plan is underway which may be significant. Netflix is trying to upsell customers on "better video quality" while inserting ads into lower tier content. I for one refuse to watch commercials so I promptly cancelled whatever "free" service that T-Mobile was offering me. Right now I do not think there is a trade to be made either on this change or price but I am watching.

A bit of trading history to share about Netflix... back in 2011 Neflix had a whopping -83% drop when it tried to change its subscription plans to separate the mail order service from the streaming service. Netflix was being forward looking but the market was still living in a world that expected us to be ordering DVDs forever. The market is very often very wrong.