Netflix, Inc. (NFLX)

Netflix Inc. is a worldwide video-on-demand distributor of movies and television shows over the internet (except in China and a few other countries). Subscribers have access to the Netflix content library for a fixed monthly subscription fee. The company offers several service tiers, including a discount, advertising-supported service. Netflix derives 59% of its revenue from outside the U.S. On November 14, 2025, Netflix effectuated a 10-for-1 stock split.

Based on closing prices, the S&P 500 (SPX) has recovered 61.8% of the losses from last week. More importantly, the index held initial trendline support off the lows since late July. With a couple of higher lows and a flat top, it still appears the index is working on a bullish ascending triangle. These formations typically are continuation in nature and therefore are extensions of the prior trend (which, of course, was higher). It is also possible the SPX is working on a less-common bullish base-on-base pattern that started about five months ago. A clean (strong) breakout above the 7,820 region would complete both formations and open the door for a possible rally above 8,000. The AI-heavy Nasdaq 100 (QQQ, 725) has more work to do simply because the recent pullback was larger than that in many other indices. Despite the big hit last week, it's still possible the QQQ is working on a bullish continuous inverse head-and-shoulders (H&S) pattern as well as a bullish cup-with-a-high-handle pattern. To complete these formations, price needs to blow through the recent closing high of 760, which is 5% above Wednesday's close. These potential breakouts must last two or three days and take out the old highs by at least 1%. A breakout on an increase in volume also would add to confirming the bullish patterns. The S&P MidCap 400 (MDY, 669) fell to its 200-day average in late September and has bounced off this key support numerous times of late. Near-term resistance comes from the recent high at 678, which also is the location of the falling 50-day average. Initial resistance for the S&P SmallCap 600 (SML 1,676) is at 1,700.

Netflix’s relatively simple business model involves only one business, its streaming service. It has the biggest television entertainment subscriber base in both the United States and the collective international market, with more than 325 million subscribers globally. Netflix has exposure to nearly the entire global population outside of China. The firm has traditionally avoided a regular slate of live programming or sports content, instead focusing on on-demand access to episodic television, movies, and documentaries. The firm introduced ad-supported subscription plans in 2022, giving the firm exposure to the advertising market in addition to the subscription fees that have historically accounted for nearly all its revenue.

Netflix’s relatively simple business model involves only one business, its streaming service. It has the biggest television entertainment subscriber base in both the United States and the collective international market, with more than 325 million subscribers globally. Netflix has exposure to nearly the entire global population outside of China. The firm has traditionally avoided a regular slate of live programming or sports content, instead focusing on on-demand access to episodic television, movies, and documentaries. The firm introduced ad-supported subscription plans in 2022, giving the firm exposure to the advertising market in addition to the subscription fees that have historically accounted for nearly all its revenue.