NFLX: Sell The Rip
Netflix (NFLX) just reported a solid 3Q22 and its shares are currently +15% in the after hours. After two consecutive quarters of declining paid memberships NFLX added 2.41 million in 3Q22 and guided 4Q22 paid additions to 4.50 million. At first glance 4Q22 guidance of an 4.2% operating margin and only 36 cents EPS look terrible but this is almost fully explained by the extremely strong dollar according to the company. While the worst may be over for NFLX – and the stock may have even seen its bear market low – I’d be a seller at this price which puts it up against its 200 DMA.