Netflix Wavers Near Key Support Levels in Worst Week Since 2016

(Bloomberg) -- A four-day slump in Netflix Inc. after disappointing second-quarter earnings has pushed the shares below one key support level and left them testing a second.

Netflix Wavers Near Key Support Levels in Worst Week Since 2016

Netflix fell as low as $344 on Tuesday after the streaming-video company’s forecast for subscriber growth trailed analysts’ estimates. That was a hair’s breadth from their 100-day moving average, a level they’ve mostly remained above for the better part of two years.

The stock swung between gains and losses Friday but never broke above the 50-day moving average, which has been a support level throughout the on-again, off-again market rebound from this year’s correction. It closed below that line Thursday for the first time since April.

Netflix, which touched a record high of $423.21 in late June, has fallen 8.5 percent this week and is on track for its biggest weekly decline in two years. The shares were selling for $362.49 in Friday afternoon trading.

Bloomberg is hosting a Netflix “Bull Vs Bear” Top Live Q&A on Monday at 12 p.m. with two analysts, BTIG LLC’s Richard Greenfield and Wedbush Securities Inc.’s Michael Pachter. Clients can email questions, which will show up as anonymous, to in advance of the event.

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