After a massive decline last year, Netflix’s share price has stabilised above $300. This is because of:
- General rebound in global equity markets – especially tech stocks because interest rate hikes are expected to slow down.
- Oversold rebound – having slumped 75% from its 2022 peak, investors decided that a punt is worth taking on Netflix.
- Competitors’ weakness – Netflix’s losses may be less than expected this year and may even benefit from the massive losses sustained by its competitors
After a multi-month rally, the stock is not as oversold as before. A period of choppy trading may happen despite the improving macro headlines.