Investing

Netflix Co-founder, Chairman & CEO Reed Hastings attends Q&A during Transatlantic Forum as part of Series Mania Lille Hauts de France festival on May 3, 2018 in Lille, France.

Sylvain Lefevre | Getty Images

Netflix shares may be getting hammered on Thursday but research from Bespoke Investment Group shows that history is typically kind to traders who buy at open following a gap lower on poor earnings.

There are 13 days when Netflix shares dropped more than 10% on earnings, Bespoke noted, out of 68 quarters. The “stock rose from the open to the close 8 of 13 times, and each of the last 4 times it has happened,” Bespoke said in a tweet.

Source: Bespoke Investment Group

Netflix dropped nearly 11% in premarket trading from its previous close of $362.44 a share. Despite a big miss in key subscriber metrics, the majority of Wall Street firms continue to recommend buying Netflix shares, with one firm calling this “the Q2 curse.”

Products You May Like

Articles You May Like

$20 million Porsche flops in auction snafu
Volkswagen recalls 679,000 US vehicles to fix electrical problem that could cause cars to roll away
‘American Ninja Warrior’ host Akbar Gbajabiamila reveals his winning financial game plan
Huge deals from the likes of Amazon help UK tech start-ups score record foreign investment
Toll Brothers profit beat is clouded by weakness in orders

Leave a Reply

Your email address will not be published. Required fields are marked *