A slowdown in subscriber growth has led to a steep drop in the Netflix share price. Shares of video streaming software dropped 7.4% after the company reported slower subscriber growth, as the pandemic dented the production of movies and TV shows. The global subscriber base of the company fell to 207.6 million (consensus of 209.8 million).
Despite the disappointing subscriber numbers, the company reported better-than-expected earnings of $3.75 per share (consensus of $2.97), with revenue of $7.2billion (consensus of $7.1 billion). These numbers did not do much to please investors, who are quite concerned about the company’s increasing inability to expand its global market amid increasing competition.
Technical Outlook for Netflix
Traders need to watch for a bounce on the 499.76 support (essentially a psychological support level). This bounce enables Netflix shares to recover towards 518.42, with 529.14 and 539.86 serving as additional upside targets.
On the other hand, a decline below the 499.76 support could lead to a big drop that targets the 480.00 price level (30 November low), with additional downside targets at 475.50 and 470.00.