LIVE NOW: NETFLIX 2026 EARNING REPORT!!!
In a Nutshell
The trader trimmed a Micron long position for $6-7k in gains while avoiding Netflix earnings due to volatility. Netflix reported a revenue miss and beat EPS by a slim margin, opening down 4% after gapping up 1% on weak guidance expectations. The stock remains in a bearish long-term downtrend testing 52-week lows near $70, with the trader holding puts and warning that cheap can always get cheaper.
These notes were generated by AI and may contain inaccuracies.
Today is July 16th at 12:54 p.m. Netflix is set to report earnings after market close. Netflix is currently trading at $73.88, nearly at 52-week lows. On the weekly timeframe, the stock is testing the moving average and is down 44% from previous all-time highs. If it recovers to those highs, there is 81% potential upside.
A nice push occurred on MU into the close. The long position was trimmed by 25 shares in case of additional selling pressure. Semiconductor stocks and memory chip companies are getting hit hard. The day's live trading session generated over $4,000. Live trading occurs every morning with all entries, exits, and thought processes visible. Yesterday featured some bad trades that were recovered from before market close. Today the mistakes were corrected and not repeated, leading to an efficient session.
Netflix is trading at $74. The Investing Pro software is being used to view earnings data. For July 16th after market close, the market expects $0.79 EPS and $12.5 billion in revenue. The last earnings report resulted in a nearly 10% selloff.
The NASDAQ showed a nice push into the close but remains in a strong descending pattern while testing major support near 700 on QQQ. Viewers are asked about their current approach: buying the dip, being cautious, waiting for a break of support, buying semiconductors on the memory chip pullback, or buying Netflix at current levels. The point is made that cheap can always get cheaper.
Markets have officially closed. Netflix is gapping up 1% initially. The stock is described as very bearish long term. It was down 3% then showed a 3% recovery. New 52-week lows were hit at $70.76. Revenue was a miss. EPS beat expectations but only barely. Guidance needs to be relatively good. Expected move is an 8% move and the stock is currently down 4%.
Netflix is not trading at a bad P/E ratio. Revenue has been going up and net income is fair. Everything looks good fundamentally, but price momentum is weak. The stock has been incredibly volatile. It could be viewed as a possible long-term play, but the concern is being too early—buying at the start of the year only to be down again. If overall markets begin to drop from elevated levels, Netflix could sell off to the lows of $20-30. The speaker has puts. Personally, options are viewed as too risky.
The focus today was Micron only. An open position remains with gains of $6,000 to $7,000 on that specific trade. The approach was to work with the market, respect the descending pattern, focus on position size without being greedy, go short when overbought, then buy the dip and allow it to rip. Trading earnings is generally avoided due to high volatility. Position size awareness and understanding personal intentions versus others' intentions are emphasized. The reminder is given that there is a lot of volatility when companies report earnings.
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