New Netflix Shorts Rocked By Ryan Murphy Deal

Twilio stock is trading near the top of the NYSE today

by Patrick Martin

Published on Feb 14, 2018 at 3:42 PM
Updated on Feb 15, 2018 at 2:58 PM

U.S. stocks have once again erased steep losses, and are now charging higher. Several individual names are making volatile moves, as well, including FAANG stock Netflix, Inc. (NASDAQ:NFLX), cloud communications platform Twilio Inc (NYSE:TWLO), and biotech stock DBV Technologies (NASDAQ:DBVT). Here's a closer look at what shares of NFLX, TWLO, and DBVT are reacting to today.

NFLX Stock Has Been Targeted By Bearish Traders

Netflix stock is up 3.8% to trade at $268.18, after The New York Times reported the streaming giant had signed producer Ryan Murphy away from Twenty-First Century Fox (FOXA) in a deal valued at up to $300 million. In addition, SunTrust Robinson issued a price-target hike to $270 from $175. Netflix stock boasts a year-to-date gain of 39%, and the shares' pullback during the recent broad-market sell-off was contained by their rising 30-day moving average.

Longer term, NFLX stock has surged more than 90% on a 12-month basis, and it seems some traders are calling a top. Since short interest fell to a more than two-year low on Jan. 15, NFLX stock has seen one the biggest short adds -- with these bearish bets up 7.9%, which equates to a dollar value change of $1.4 billion. A bigger bounce from the security could prompt these shorts to abandon ship.

Earnings Have Twilio Stock Gapping Higher

Twilio is up 18.4% to trade at $31.32, one of the best stocks on the New York Stock Exchange today (NYSE), after the tech company reported a fourth-quarter loss that was slimmer than expected. Twilio also gave a stronger-than-estimated 2018 revenue forecast. TWLO shares are on track for their best session since June 2016, and are trading above their recently formed 320-day moving average.

A short squeeze could provide more fuel for TWLO's run. Short interest decreased 19% since mid-November, but still represents roughly 21% of the stock's total available float. At TWLO's average daily trading volume, it would take more than 12 days for shorts to fully cover their positions. 

Peanut Allergy Drug Update Lifts DBVT Stock

Shares of French biotech DBV Technologies are up 25.9% to trade at $26.27, and near the top of the Nasdaq Composite (IXIC) today. The company reported it was on track to file for U.S. regulatory review of its peanut allergy patch, Viaskin Peanut, in the second half of 2018.

After touching a record high $50.57 on Oct. 11, DBVT stock suffered a bear gap, after the drug failed a critical trial with children. Now, the stock is trading above its 80-day moving average for the first time since late October, and is currently track for its best single-session ever.

The shares may have been headed for a bounce, regardless. At yesterday's close, DBVT's 14-Day Relative Strength Index (RSI) was docked at 27, firmly in oversold territory.


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