Cashtag Crowd Sees 10% Netflix $NFLX Drop Post Earnings Tomorrow

One of the most-anticipated companies of the earnings season reports tomorrow after the bell — Netflix — and the cashtaggers on StockTwits don’t like what they see.

Poor price action, higher content costs and Wall Street analysts fleeing the stock at the last minute before earnings has sentiment dropping before the results hit the tape.

TraderMK

Jan. 21 at 11:11 AM

$NFLX weekly options pricing 10-11% move. Still debating if I sell before earnings release. I am short via options.

Traders note that the stock — once loved by Carl Icahn — is taking out previous levels of support faster than Big Carl can take down Bill Ackman in the schoolyard.

TradingWithWaves

Jan. 21 at 10:05 AM

Ahead of $NFLX earnings the weekly stochs are down, the path of least resistance is lwr (blue path) http://stks.co/a08GY

Tuesday’s action, where $AMZN led the Nasdaq into the green and $NFLX was left behind like Little Steven in “Lillyhammer” was also a troubling sign.

contrarianspeculator Jan. 21 at 9:38 AM

$NFLX: goes red with nasdaq screaming higher.Not a good sign. If they miss tomorrow on results, the stock could lose 20% in minutes

 

 

The last straw was an analyst calling her own estimates a “House of Cards.”

LDrogen

Jan. 21 at 10:01 AM

 

Needham $NFLX analyst Laura Martin takes an axe to her estimate for this quarter, way below consensus http://stks.co/ptYY

To boot, some tough Net Neutrality rules possibly raising its distribution costs could end up squeezing Netflix on both sides (along with its ever-rising content costs).

The contrarian trade often works, but beware that the crowd is clearly scared of this one.


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