Netflix: Way More Room to Drop
"Doubled eleven times in 19 years … then cut in half twice"
by Bob Stokes
Updated: June 29, 2022
The glory days of at least one of the FAANG stocks appear to be all but over -- at least for now.
As revenue shrinks at Netflix, more heads have rolled at the subscription-based streaming service of movies and television shows.
A June 23 Variety headline says:
Netflix Begins Second Round of Layoffs, 300 Positions Cut
About a month ago, around 150 employees were let go.
The layoffs are also occurring amid a deflation in the company's stock price.
The May Elliott Wave Theorist provided this chart and eye-opening perspective:
Netflix is down 70% from its high. Many people think it can't go lower. Is this an indication that stocks are near a major bottom?
[The chart] shows the stock's price history. From its low at $0.35 in 2002, Netflix doubled eleven times in 19 years to reach 700.99. Since then, it has been cut in half twice. There is certainly room for more halvings. If you want to monitor the milestones, they are: 700.99, 350.50, 175.25, 87.62, 43.81, 21.91, 10.95, 5.48, 2.74, 1.37, 0.68 and 0.34.
Keep in mind that this is a picture of a stock that has been aggressively bid lower since November 2021. Many stocks are still near highs and have far more room to fall than Netflix.
Since the end of Q1 alone, Netflix's stock is down 53% with a price of $176.32, as of this intraday writing on June 29.
The Elliott Wave Theorist is also keeping subscribers apprised of the stock market's big picture and just know that most investors have no idea of what is likely just ahead.
Get independent analysis that you will not find anywhere else by following the link below.
The Elliott Wave Theorist Stands the "Test of Time"
Market newsletters come and go -- yet The Elliott Wave Theorist first published in 1979 and has served subscribers ever since.
The Theorist's longevity is easily explained: Robert Prechter's deep knowledge of how the Wave Principle applies to financial markets and cultural trends is unique.
More than that, his knowledge is presented in such a compelling manner that his readers look forward to each new issue -- month after month, year after year.
Right now, The Elliott Wave Theorist is focused on keeping subscribers financially safe.
Read it instantly inside the Financial Forecast Service by following the link below.
Financial Forecast Service
All month long, Financial Forecast Service helps you stay ahead of the waves in the U.S. markets on the timeframes that matter the most. FFS covers the stock indexes, bonds, gold, silver, the U.S. dollar, as well as market psychology and cultural trends. It is our most popular service.
Comprises the monthly Elliott Wave Financial Forecast, 3x-per-week Short Term Update and at least 12x-per-year Elliott Wave Theorist.
As capital is leaving Taiwan and Hong Kong, the MCSI Singapore looks "very healthy," says our monthly Asian-Pacific Short Term Update editor Chris Carolan. Watch him explain how he uses a technical tool called Keltner Channels to help him forecast this important market.
There is a curious 8-year cycle in the euro's strength and weakness. And now that it's near parity with the U.S. dollar, it's worth talking about a curious pattern in the dollar's bouts of strength, too. Watch your Market Trek host Brian Whitmer show you a couple of eye-opening charts with big implications for global stability. (Brian's destination today is Madrid, Spain.)
Supersonic flight is making a comeback. And the timing couldn't be better. Our Head of Global Research explains why.