Netflix Shares Higher on Thursday
Shares in US streaming giant Netflix are seeing a fresh wave of buying this week. Along with the drop in USD yesterday, which helped lift equities across the board, Netflix is also benefiting from news that it will launch its first gaming studio. The studio, which will be based in Finland will be led by Marko Lastikka, formerly of Zynga and Electronic Arts. The move marks an intensification of the company’s efforts to offset the streaming subscriber losses it’s suffered this year as a result of price changes, competition growth and post-pandemic changes in consumer habits.
In a statement released, the company note that the new Netflix Game Studios will offer original games with no adds and no in-app purchases. Currently, it has not been confirmed whether these games will be mobile only or if Netflix plans to target the console market.
It’s been a tricky year for Netflix with the company’s shares gapping lower by 35% and continuing lower to sub 50% in response to news of the massive Q1 subscriber loss. However, shares have been grinding back since then and are now threatening to break higher.
Technical Views
Netflix
Netflix stock is fast approaching the 251.90 level which is where shares opened after the gap lower in April. Price has already tested this level once but, with shares trading in a bull channel over recent months, momentum now looks to be In favour of a break higher. If we do move above this level, bulls can look for a retest of the 330.43 level in the longer-run.
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