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Netflix, Inc. (NFLX) Stock Is About to Release a Bearish Sequel

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Shares of Netflix, Inc. (NASDAQ: NFLX ) have put together a nicely packaged move of late. But the bad news? If I'm right, NFLX stock is facing another episode of horror for bulls - set to air this Monday night.

Vivian D Nguyen via Flickr (Modified)


Netflix earnings for the second quarter will be released after the close this coming Monday, July 17. And in front of one of the market's more consistently entertaining corporate confessionals (if we use price volatility as our gauge), Morgan Stanley decided to step up to the mound and throw its best pitch at investors.

Analyst Benjamin Swinburne offered an "Overweight" reiteration while raising his price target from $175 to $185. The PT lift compares to a median forecast of $170 and implies upside of 17% from Thursday's close of $158.21.

The price hike for NFLX stock is based on the firm's view the market isn't right. Said another way, it "isn't fully appreciating Netflix's potential for materially higher earnings power."

Thursday was apparently no different. Investors more or less tuned out Morgan Stanley's latest pitch, and Netflix fell marginally on a day the NasdaqComposite did the same.

Investors' collective dismissal isn't surprising. If they're tuned into a trading screen, my guess is one guy's "flat base" of six weeks has more...