Netflix Is Down 42% From Its High. History Says This Is the Setup to Watch.
It's been a rough 14 months for Netflix investors, but history is on the side of the bulls after share drawdowns.
Overview
It's been a rough year and change for Netflix (NASDAQ: NFLX). The company behind the world's most popular premium streaming platform entered this week trading 42% below the all-time high the shares notched 14 months ago.
There are some good reasons for the market keeping Netflix in check. Just three quarters after posting its strongest revenue growth in four years -- an 18% year-over-year jump for last year's holiday quarter -- revenue decelerated to 16% and 13% in subsequent reports. Its guidance for the current quarter calls for an 11.7% step-up for the period ending next month, its weakest showing in almost three years.
Details
Momentum is not on the side of Netflix bulls, but investors have been here before. Let's take a closer look at what history shows us about sharp sell-offs in Netflix stock.
Source
Originally published at www.fool.com.