Wall Street is focused on Netflix as the streaming platform prepares to release its second-quarter financial results post-market Thursday at the start of earnings season. It’s an event that could drive the “beaten down” stock to its lowest price in nearly two years, according to NYSE insider Jay Woods . “This stock has been beaten down,” Woods told CNBC, noting that shares could slide below the critical $70 level. Netflix last traded below $70 per share in September 2024. Woods added that Netflix investors should look out for a so-called “fold” in the firm’s chart, or a pattern that suggests the stock’s previous price action could repeat itself in reverse. “If not, we have a major breakdown,” he said. Shares of Netflix have plunged 40% over the past year as the streaming platform issued underwhelming forward guidance earlier this year, contended with uncertainties tied to its unrealized bid to acquire Warner Bros. Discovery and the departure of co-founder and former board of directors chairman Reed Hastings. NFLX 1Y mountain Netflix has fallen 40% over the past 12 months. If Netflix’s forthcoming financial results come in below the Street’s expectations, the stock could fall even further into the red before potentially recovering, Woods warned. Netflix shares have sold-off after each of its last four earnings reports. “If it breaks $70 [a share], watch $57 on a long-term basis,” Woods said. “A relief rally takes us into the early $80s. Then, we see if this is … a relief rally or something more.” (Watch full video above.) In the exclusive video, Woods also talks about other events he’ll be watching this week, including: Two other key earnings report this week: One from Johnson & Johnson and the other from Fifth Third Bancorp . Federal Reserve Chairman Kevin Warsh’s testimony before Congress. The Bureau of Labor Statistics’ release of two critical economic data points – the consumer price index and the producer price index – on Tuesday and Wednesday, respectively. “That will really dictate where the Fed goes from here,” Woods says. (This weekly Monday video is exclusively for CNBC PRO subscribers.)
Netflix risks diving below key support level this week, Jay Woods says
