Netflix (NASDAQ:NFLX) is scheduled to announce Q1 2020 results Tuesday after market close — and investors appear to have already cast their votes. Shares of the streaming entertainment giant dropped 3.7% on Friday, even as the broader market soared.
The Nasdaq Composite, where Netflix is listed, gained 1.4% during the final trading session of last week, while the S&P 500 rallied 2.7% and the Dow surged 3%.
Friday's plummet came after Benchmark analyst Matthew Harrigan set the stock’s target price at $327, implying a downside of 25%, citing production disruption and intensifying competition from Disney's (NYSE:DIS) Disney+ service and AT&T's (NYSE:T) HBO Max, among others.
While the COVID-19 related slowdown in the creation of continuous fresh content is being offset by studios offering to sell their material to Netflix amid empty movie theaters, tempering the risk of customer-losses due to a lack of fresh, compelling production, it's also true that Netflix's rivals have the same access to these releases.
Does Friday's decline mean Netflix shares are headed lower still? Tracking the technical patterns can help interpret what these moves may be suggesting.
Netflix Daily Price Chart
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