Netflix Breakout Loading: 33% Upside Ahead?

One of the trades we opened today in the premium channel and, in my view, it’s still not too late to enter.

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✅ Netflix #NFLX — one of the global leaders in streaming and digital entertainment. The company is expanding beyond its subscription model into advertising, live content, and gaming. Among its key financial priorities, Netflix highlights revenue growth, expanding operating margins, and increasing free cash flow.

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📊 **FUNDAMENTAL ANALYSIS**

🟢 Following Q4 2024 results, the company raised its 2025 revenue guidance to $43.5–44.5B and targets a 29% operating margin — above previous expectations.

🟢 Management explicitly pointed to continued healthy member growth, moderate ARM expansion, and roughly 2x growth in advertising revenue — a strong driver for potential revaluation.

🟢 The Netflix Ads Suite has already launched in the US and Canada, with further expansion across EMEA, enhancing monetization and diversifying the business model.

🔴 At the same time, the stock is historically not cheap, so the market often prices in high expectations after strong rallies.

🔴 Additional risk comes from high sensitivity to earnings reports, guidance updates, and advertising segment performance.

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🛠 **TECHNICAL ANALYSIS**

📈 **LONG**

▪️ On the weekly timeframe, price reversed after a strong decline and broke out above the descending impulse channel.
▪️ After bouncing from the 75–80 zone, a strong bullish impulse formed, pushing price back above the weekly EMA 50.
▪️ Price is holding above the key 100–103 zone, which now acts as near-term support.
▪️ RSI has recovered and moved above the midline, signaling strengthening bullish momentum.
▪️ OsMA / MACD is in positive territory, with the histogram above zero — confirming bullish momentum.
▪️ The next major resistance is the descending trendline around 110–115. A breakout could accelerate the move toward higher targets.

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↗️ **TRADE**

🎯 First target: $114.32
🎯 Second target: $133.44

📊 Potential upside: **33%**

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💼 Portfolio: #active_management

⚠️ The ideas shared are not investment advice — they reflect the author’s personal opinion only.