NFLX rises as JPMorgan moves higher on ad model

  • Netflix appears poised for a boost on Tuesday as JPMorgan strikes an upbeat note.
  • NFLX is poised to win as JPMorgan says the ad could add more than $2.7 billion in revenue.
  • NFLX shares are down 61% year to date.

Netflix (NFLX) Stocks are trending Tuesday as JPMorgan issued a bullish note outlining the potential for the level of advertising Netflix will launch shortly. Netflix has had a rough year regarding stock performance. While the platform itself remains almost essential in the modern home, the stock itself has seen a steep decline. Netflix’s valuation had risen too high during the print phase of the pandemic and, like many other locked-in stocks, it has corrected harshly.

netflix stock news

JPMorgan came out on a positive note on stocks on Tuesday. The investment bank sees the potential of the new level of advertising with the potential to add up to $2.7 billion in revenue in the US and Canada alone. How well consumers react to advertising remains to be seen, as that was one of the key USPs (unique selling points) of broadcast versus traditional media. No ads, no waiting, no binge drinking. Many streaming services have already ditched binge-watching and release shows every week, so this may be another step back from the old-school mainstream TV model.

Commercials and having to wait a week for a new show is a lot like why we left TV stations in the first place. However, given the strong inflationary environment, there is no doubt that cheaper is better according to some consumers’ thinking, so the level of advertising may be well accepted. Spotify uses a similar model.

Also of note, especially for AMC and APE shareholders, is the limited theatrical release of Netflix’s latest sequel, Glass Onion A Knives Out Mystery. The sequel again stars Daniel Craig in the title role. Netflix will reportedly give the film just one week in theaters before streaming it a month later, only appearing on 600 theater screens. This is a test release for Netflix as I believe this is the first Netflix movie to go to theaters first before appearing on the streaming service.

Netflix Stock Forecast

Netflix has been attempting to form a bottom pattern with trend line support now at $223 and below the series lows at $165.90. This is capped at the top and is a wedge or pennant pattern. This can often lead to powerful breakouts. The key level to watch is $251.75.

NFLX 1-Day Chart

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