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Netflix Isn’t Done Falling

Published 11/23/2018, 12:51 PM
Updated 07/09/2023, 06:31 AM

Having already lost 40% of its value, and with a price:earnings ratio of “only” 96, it may seem that Netflix (NASDAQ:NFLX) is an absolute steal right now. I don’t think so, which is why I remain short this security. Looking at this year's performance, you can see the well-formed reversal pattern that has formed (below).

This Year's Netflix

Looking at the long-term picture, my view is that we have just completed the third major reversal in the company’s history, the prior two tinted in blue below for emphasis.

Long-Term Netflix

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