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▲ Netflix (Netflix, NFLX), Stock Decline/AI Generated Image
Netflix (Netflix, NFLX) surged more than 5% even amid a sharp decline in the Nasdaq 100 index, directly defying the tech stock sell-off. Although the long-term trend remains in bearish territory, the expansion of live sports and expectations for July earnings have combined, leading investors to bet on Netflix again.
According to financial media outlet Benzinga on July 2 (local time), Netflix's stock price rose 5.43% to $78.22 despite the overall weakness in tech stocks that day. Considering that the Nasdaq 100 index fell more than 2% on the same day, Netflix's rebound was distinctly strong compared to the market. However, the stock price is 7.2% lower than the 50-day simple moving average of $84.13 and 18.7% lower than the 200-day simple moving average of $96.11, indicating that a long-term trend recovery has not yet been confirmed.
Technical criteria are also clear. The Relative Strength Index (RSI) remained in neutral territory at 48.46, and it was assessed that the short-term rebound had not entered overbought territory. Key resistance was set at $91.5, and key support at $71. As buying interest emerged near the 52-week low of $70.86 recorded in June, whether the $71 level can be defended will be the criterion for determining a resumption of downward pressure.
The backdrop to this rebound is a live sports strategy. Netflix has embarked on expanding its sports content to include WWE, MLB events, five NFL games in the 2026 season, and the NFL Honors in February 2027. The possibility of broadcasting a rematch between Floyd Mayweather and Manny Pacquiao was also mentioned, but that streaming remains uncertain due to litigation variables.
Earnings expectations also supported the stock's rebound. Netflix is set to announce its earnings on July 16, and the market anticipates earnings per share of $0.79 and revenue of $12.58 billion. This is higher than the earnings per share of $0.72 and revenue of $11.08 billion in the same period last year. The average analyst target price was compiled at $113.36, and Bank of America (BofA Securities) maintained a buy rating and a target price of $125. Guggenheim issued a buy rating with a target price of $120, and Piper Sandler gave an overweight rating with a target price of $115.
Netflix is pursuing a strategy to boost both growth and user engagement time by combining its global subscriber base of over 300 million, ad-supported plans, and live sports. While Benzinga Edge indicators showed strength with a quality score of 92.22 and a growth score of 89.74, momentum (5.38) and value (20.71) scores were weak. For the stock's current rebound not to be merely a short-term retracement, a recovery of the 50-day moving average and a breakthrough of the $91.5 resistance level are necessary.
*Related Article: Netflix (NFLX) Plunges to 52-Week Low... Wall Street Rates 'Buy'
[Article Summary]
-Netflix's stock price rose 5.43% even on a day when the Nasdaq 100 index fell more than 2%, showing a trend divergent from the tech stock sell-off.
-The stock price remains below the 50-day and 200-day moving averages, so a long-term trend recovery has not yet been confirmed, and breaking the $91.5 resistance level is key.
-While the expansion of live sports and expectations for July 16 earnings acted as catalysts for the rebound, momentum and valuation indicators still remain a burden.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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