Netflix Stock Breaks Out As Internet TV Network Reveals Price Hikes
Netflix (NFLX) stock hit a record high on Thursday after the internet television network revealed price hikes for two out of three of its U.S. streaming plans. Netflix kept its basic plan, which allows standard-definition video streaming on one device at a time, at $7.99 a month. But it raised the prices on its midrange and high-end tiers by $1 and $2, respectively.
The Los Gatos, Calif.-based company increased the price on its midrange plan, which allows high-definition video streaming on two devices at a time, to $10.99 a month from $9.99. It upped the price of its top-tier plan, which allows ultra-high-definition video streaming on up to four screens at the same time, to $13.99 a month from $11.99.
Netflix Shares Surge to Record High as Investors Cheer Price Hikes
The streaming giant’s price hikes come as its ramps up spending on big-budget productions, and as Old Media gets more serious about investing in its own streaming services. Thanks to its latest price hikes, Netflix Inc. (NFLX ) might have more than $1 billion in additional funds next year — and even more in the following years — to bolster its already-giant content budget with if it wishes.
And in doing so, it may put more distance between its streaming library and those offered by a growing stable of rival services backed by media incumbents. Netflix’s action does come with one meaningful risk: It’s further increasing the price premium its services carry (both directly and indirectly) relative to Amazon.com Inc.’s (AMZN) Prime Video.
Today's Trading Lesson
Today’s chart of DAL-Delta gives us an excellent opportunity to teach trade management tactics…
The difference between order flow and momentum is commitment. In other words, “How much money have the institutions committed to an idea?” The longer the commitment, and the more obvious, then you should look to confidently build positions and hold your winners longer.
Ride the order flow until you see a change on the tape.
The chart below of DAL shows amazing momentum, but NOT order flow. We see a clear breakout from consolidation, and overhead resistance that makes for a terrific price target, BUT… it is momentum.
A great trade scenario, but one you would not aggressively build a position, I call these “cash flow” trades.” When you can learn and then spot the difference between these two plays, what you do between entry and exit becomes 10X easier. No guessing.
Today's Trade of the Day | 10-6-17
PNC Financial traded into a bullish U-Turn yesterday which typically shows solid follow through. Game planning a new swing trade long using a $136 buy stop. Profit target comes in at $141, with a stop loss on a close below $134.50
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Stocks to Trade | Friday Edition 10-6-17
Bullish Momentum: NFLX, LB, SLCA, KEM, PYPL, CC, GS, C
Bearish Momentum: mnk, celg, aaoi
Bullish Order Flow: GS, MAR, BA, MA, COST, PNC, BIDU, HD, UTX, ABBV, EOG, KITE, DE, LRCX, CC, ADI, C, LOW, COF, LLY, JPM, TXN AA, YELP, HON, DG, DLTR
Bearish Order Flow: momo, k, khc, pep, wba
Double Normal Volume: SHOP, NFLX, CELG, HMNY
Inside Days: mu, mgm, cvs, hal, dal, tsla, atvi, cog, hes, gis, bp, pgr, cat, nem, clr, dg, de
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