The earnings season is slowly picking up pace these days. Yesterday evening, the numbers from Netflix provided the first highlight.

The streaming provider’s stock already saw a significant increase in pre-market trading. From a technical chart perspective, the path to new all-time highs should now be clear.

Netflix stock has turned the tide. I assume you all know Netflix. The company, founded in 1997 as an online video store, was the undisputed market leader in the streaming business for a long time. The entry of the Walt Disney company temporarily caused a drop in Netflix’s stock. However, the industry pioneer has since regained its position.

In the long term, Netflix is an impressive success story. Since its IPO in May 2002, the stock has risen by more than 60,000% at its peak in November 2021. After its temporary crash – within six months, the stock lost more than three-quarters of its value – the price has turned around and is once again on the rise.

Netflix surprises with new subscriber record. For many years, the US company was able to continuously increase its number of subscribers. It is now becoming increasingly difficult to continue growing. Therefore, the company has taken appropriate measures, which – as is now evident – are bearing fruit.

Among other things, Netflix cracked down on customers who (illegally) shared their account with others. In addition, for over a year now, Netflix has been offering a cheaper subscription model, trying to attract new customers through the price.

This is obviously succeeding – thanks in part to successful new productions. In the final quarter, Netflix increased its number of users by 13.1 million to a total of 260.3 million customers. Analysts had only expected around 9 million new customers. Revenue increased by 12.5% to $8.83 billion. The profit amounted to $938 million, compared to only $55 million in the same period last year.

Source: www.aktienscreener.com

All-time high in sight. After a consolidation phase in recent weeks, everything points to the uptrend continuing in the next round. In pre-market trading today, the stock price saw an increase of almost 10% and is likely to pulverize the round $500 mark, which has proven to be a stubborn resistance in recent weeks.

Everything indicates a strong trend movement. From a technical chart perspective, the path is clear for further price increases. In the medium term, the Netflix stock should be able to target its previous all-time high. This was reached in November 2021 at $701.