TRADE SETUP

Where do we stand fundamentally?

Netflix is rolling out its first major TV app redesign in 12 years, starting May 19, 2025. The update features a persistent navigation bar, larger content tiles with details like synopses and awards, and more responsive recommendations. It aims to highlight live events and games, with generative AI-powered search and a TikTok-like vertical video feed being tested on mobile. The redesign could influence other streaming platforms, as many have emulated Netflix’s interface.

After a Q1 2025 rally, some analysts recommend selling NFLX to book profits, citing high valuations and concerns over transparency in subscription data. Some analysts see NFLX as a strong buy on dips despite tariff threats, while others note a 2% drop after Trump’s proposed 100% tariff on foreign films, though Netflix’s global reach and content strategy mitigate concerns

NFLX reached the 1170 high and is pulling back. A rejection here will lead to a deeper pullback into the 800-900 zone.

We need a sustained breakout above 1170 for the rally higher to continue. I am inclined to short trade in the short term due to tariffs concerns and overvaluation.

_{I am taking a near-term short-trade entry with an SL above 1200 to target 900. You can buy puto options as well.}