Last week, the company said it is developing a new data saver for mobile devices, the Wall Street Journal reports.
The data saver would enable customers to stream more video content if they have a smaller data plan, according to the Journal.
Netflix stock has fallen about 10% so far this year.
Based in Los Gatos, CA, Netflix is a provider of Internet television.
Netflix (NFLX:Nasdaq) is one of those high powered momentum names that it seems everyone hates. From a valuation perspective, the stock is always overvalued.
But from a chart/technical view, there is no better name to play when you're on the right side of the momentum.
Netflix was the number one performing stock from the S&P 500 in 2015, but what has it done for an encore? The first six weeks for Netflix were downright dreadful: the stock lost well over 25% on very high turnover. While House of Cards was quite popular, investors stayed away from Netflix as if it carried some kind of virus.
Yet, we know stocks don't stay down forever, and with the stellar gains in 2015 one would expect a bit of giveback, but just not to the degree of what we witnessed in January/February.
Moreover, there was worry their earnings momentum was starting to slow down, which hits at the very heart of Netflix growth.
The chart reflected the sour mood, but since bottoming in February the trend upward has renewed.
I made Netflix one of my stocks of the year for 2016, and that call was clearly way off -- Netflix is down about 13% for the year so far. As you may know, Netflix is part of the FANG group that was first presented by Jim Cramer on Mad Money.
The price action since bottoming in early February has been solid, up well over 20% and on solid turnover.
Momentum indicators are flashing bullish signals and the tight range could be broken, with price heading toward the magnet 200-day moving average (circa $105.95).
Through that level on strong volume, we could see the $120 area attacked with vigor. Log into this video for more.
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Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rates this stock as a "hold" with a ratings score of C. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and generally higher debt management risk.
You can view the full analysis from the report here: NFLX