TraderMD

NFLX Breakout Setting up

Long
NASDAQ:NFLX   Netflix, Inc.
NFLX appears to be setting up for a breakout to the upside and for good reason. Although Q2 is expected to be poor, the remaining quarters of the year is expected to be better. Multiple positive catalyst in development in the long run, and negative churning from small price increase ins subscribers at this point doesn't seem that much of a concern, since NFLX deal with Disney and Comcast. Thus Q2 may not effect smart money players, however spending is expected to be greater as a result of expansion and original content cost. Currency devaluation is another concern on profits but that is a double edge sword considering the fact that expenses could be cheaper. If the company was smart they borrow and pay later at a cheaper rate or lower currency devaluation and hedge profits from currency devaluation.
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