Netflix Stock Moves Higher After Double Upgrade

NFLX is still on pace for its first yearly loss since 2014, though

Digital Content Manager
Dec 29, 2022 at 10:00 AM
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Netflix Inc (NASDAQ:NFLX) was last seen up 2.1% at $282.74, after the security earned a double-upgrade from CRFA to "buy" from "sell," and a price target hike to $310 from $225.

The analyst praised Netflix as one of only a few profitable streaming providers on a global scale, and also highlighted original content such as "Emily in Paris," which can support subscriptions. Plus, the firm noted efforts to control account sharing and a new advertising tier that should act as catalysts.

The brokerage bunch is mostly pessimistic on NFLX. Coming into today, 17 of the 32 analysts in question still called the equity a tepid "hold" or worse, while 15 said "strong buy."

That pessimism is echoed in the options pits. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), NFLX's 10-day put/call ratio of 1.25 stands higher than all readings from the past year, suggesting puts were picked up at a much quicker-than-usual clip during the last two weeks.

A shift in sentiment appears to be underway, though. So far, 30,000 calls have crossed the tape, which is double the intraday average volume, as opposed to 23,000 puts. The most popular contract is 12/30 295-strike call, where new positions are being opened.

It's also worth noting the equity's Schaeffer's Volatility Scorecard (SVS) ranks at 84 out of 100, meaning the security tends to outperform volatility estimates -- a good thing for buyers. 

Netflix stock yesterday slipped just below a recent floor at the $280 level, but the 80-day moving average contained steeper losses. The shares are today looking to snap a four-day losing streak, but are still on pace to register their first yearly loss since 2014, having shed just over 54% so far in 2022. 

 

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