Netflix is the #1 holding in SKYY, and definitely one of its strongest components. Last week I identified it was on the verge of a breakout. And, sure enough, it broke out the next day. You don’t need anything other than technicals to see that with higher lows, it was wedging to breakout all 2018, despite the market being in turmoil, with extreme drops, and the S&P basically going nowhere as it repeatedly chopped its 2018 open.
Yet, if you are in need of fundamentals behind this beautiful chart, I need only to remind you that they are not only #1 in monetized video content delivery in the world, but they are also growing rapidly internationally. This includes bringing and new dubbing foreign content to existing audiences, such as 3% and The Rain. Combined with their ever growing long list of original content, they are an innovative displacement to older industries including cable and Hollywood.
If they weren’t busy growing their international audiences, I’d be expecting new diverse business model innovations leveraging their vast infrastructure and content market place they created. Perhaps one day, that will come. Until then, they will grow their core business and are likely to remain #1 in it for years to come.
Immediate supports in NFLX, which would be possible long entries if you are looking to add, include $339, $334, $323 and $311.