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After two quarters of subscriber declines and slowing growth, streaming major Netflix, Inc. (NFLX) bounced back in some fashion as it added more subscribers than analysts estimated in the third quarter. NFLX reported a net gain of 2.41 million subscribers, which was considerably higher than the average 1.1 million additions expected by analysts.
Amid rising competition from other streaming platforms, NFLX reported a subscribers decline of roughly 200,000 in the first quarter and 970,000 in the second quarter, leading its shares to nosedive.
The higher-than-expected subscriber addition in the third quarter surprised the market. NFLX shares jumped after the company’s results were announced on October 18, 2022.
Source: MarketClub
NFLX has had a torrid time this year, with its stock declining 55.3% in price year-to-date to close the last trading session at $269.06. However, its shares have gained 12.6% over the past month.
The company comfortably beat Wall Street revenue and earnings estimates in the last reported quarter. Its revenue and EPS beat the estimates by 1.1% and 43.1%, respectively.

After a poor first half where The Walt Disney Company (DIS) overtook NFLX as the market leader, the company took up massive changes, such as introducing ad-supported streaming and cracking down on shared accounts. The company is also considering a cloud-gaming service.
In its letter to its shareholders, the company said that it expects 4.5 million new subscribers in the fourth quarter and expects its revenue to grow to $7.78 billion. Its subscriber guidance is higher than analysts’ estimates of 4 million.
In the shareholder letter, NFLX executives said, “After a challenging first half, we believe we’re on a path to reaccelerate growth.” The company debuted its advertising-supported tier in the United States, dubbed “Basic with Ads,” for $6.99 a month, which is below Disney’s ad-based price point of $7.99. It is expected to be launched in eleven other countries by November 10.
Moreover, as it looks to crack down on account sharing, the company, in its letter, said, “landed on a thoughtful approach to monetize account sharing, and we’ll begin rolling this out more broadly starting in early 2023.”

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Here’s what could influence NFLX’s performance in the upcoming months:
Mixed Financials
NFLX’s revenues increased 5.9% year-over-year to $7.92 billion for the third quarter ended September 30, 2022. Its net income declined 3.5% year-over-year to $1.39 billion. The company’s EPS came in at $3.10, representing a decline of 2.8% year-over-year.
Its net cash provided by operating activities increased 576% year-over-year to $556.81 million. In addition, its non-GAAP free cash flow increased 544.1% year-over-year to $471.85 million. Also, its operating margin was 19.3%, compared to 23.5% in the year-ago period.
Mixed Analyst Estimates
Analysts expect NFLX’s EPS for fiscal 2022 to decline 8.2% year-over-year to $10.31. On the other hand, its revenue for fiscal 2022 is expected to increase 6.3% year-over-year to $31.58 billion.
Its consensus EPS and revenue estimates for fiscal 2023 of $10.69 and $33.87 billion indicate a 3.7% and 7.2% year-over-year increase, respectively.
Mixed Profitability
In terms of the trailing-12-month gross profit margin, NFLX’s 39.62% is 21.3% lower than the 50.32% industry average. Its 1.47% trailing-12-month Capex/Sales is 61.8% lower than the industry average of 3.84%.
On the other hand, its 18.16% trailing-12-month EBIT margin is 96% higher than the 9.27% industry average. Also, its 16.03% trailing-12-month net income margin is 234.6% higher than the 4.79% industry average.
Technical Indicators Show Promise
The recovery of NFLX remains uncertain, considering its mixed fundamentals, but the stock’s trends are promising, which traders could capitalize on.
According to MarketClub’s Trade Triangles, the long-term trend for NFLX has been UP since August 4, 2022, and its intermediate-term trend has been UP since October 17, 2022. However, the stock’s short-term trend has been DOWN since November 1, 2022.
Source: MarketClub
The Trade Triangles are our proprietary indicators, comprised of weighted factors that include (but are not necessarily limited to) price change, percentage change, moving averages, and new highs/lows. The Trade Triangles point in the direction of short-term, intermediate, and long-term trends, looking for periods of alignment and, therefore, intense swings in price.

In terms of the Chart Analysis Score, another MarketClub proprietary tool, NFLX scored +75 on a scale from -100 (strong downtrend) to +100 (strong uptrend), indicating Bull Market Weakness. While NFLX shows signs of short-term weakness, it remains in the confines of a long-term uptrend.

The Chart Analysis Score measures trend strength and direction based on five different timing thresholds. This tool considers intraday price action; new daily, weekly, and monthly highs and lows; and moving averages.
Click here to see the latest Score and Signals for NFLX.
What’s Next for Netflix, Inc. (NFLX)?
Remember, the markets move fast and things may quickly change for this stock. Our MarketClub members have access to entry and exit signals so they’ll know when the trend starts to reverse.
Join MarketClub now to see the latest signals and scores, get alerts, and read member-exclusive analysis for over 350K stocks, futures, ETFs, forex pairs and mutual funds.
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Best,The MarketClub Team[email protected]

Federal Reserve Chairman Jerome Powell should have started the November Federal Reserve meeting press conference with one of the more widely used movie quotes, “there’s a storm coming.” Chairman Powell’s comments after the Fed meeting were certainly the most hawkish we have heard from him.
First, the Federal Reserve Board unanimously voted for the 0.75% rate hike. That alone is a sign that all members of the Fed believe we still need to slow the economy to fight inflation.
During the press conference, Powell took this perhaps another step further when he was asked a question and responded that inflation hasn’t been coming down as fast as the Fed had hoped.
Powell’s answer about inflation not coming down as his team expected came after he indicated the likelihood of a soft landing was diminishing. Powell mentioned that November’s 0.75% hike, the fourth hike of that amount in four consecutive meetings, was “fast pace,” however, he also insisted that it was “appropriate” given our current situation, referring to high inflation.

Powell also stated the Fed has some ways to go with future rate hikes. He continued, “We may move to higher levels than we thought.”
Another concerning statement came when Powell said, “the question of when to moderate the pace of increases is now much less important than the question of how high to raise rates and how long to keep monetary policy restrictive.”
I had written in the past that I felt the Fed Chairman was “sugar coating” the inflation situation to help stabilize the economy and the market’s reactions to his comments.
However, Jerome Powell’s comments on November 2, 2022, were the first time he did not come across as soft or sugar-coating about what is happening with inflation and the economy. In several ways, the Federal Reserve Chairman is telling the world that inflation is enemy number one and that what the Fed has done up to this point is not working.
So, what does this all mean for the average investor?
As Powell said, the most likely outcome is falling into some recession. Obviously, no one knows how bad the coming downturn will be or how long it will last.
But, based on Powell’s comments and those from other Central Bank officials worldwide, it is tough to deny that we are, at best, heading into a recession, if not already in one.
Therefore, the best thing to do is protect your investment funds. The best thing to do is hedge your portfolio. You can do this in several ways, which I have explained over the last few months.
You can invest in short Exchange Traded Funds like the Direxion Daily S&P 500 Bear 1X Shares ETF (SPDN). This ETF will increase in value as the S&P 500 declines in value, which is very simple.
Another strategy would be to buy ETFs that short long-term Treasury Bonds. Something like the Simplify Interest Rate HJedge ETF (PFIX) has performed amazingly well in 2022 as the Fed has increased interest rates.
One more investment you can make is buying an ETF or group of ETFs that will benefit from a rising dollar.
As we have seen over 2022, as the Fed raises rates and US Treasury Bonds pay a higher yield, investors worldwide have flocked to the US dollar. This has sent the dollar higher and brought other currencies lower.

With Powell saying he doesn’t know how high he will have to raise rates, there is a good chance the dollar will continue strengthening. Buying an ETF like the Invesco DB Dollar Index Bullish Fund (UUP) will help your portfolio if the dollar strengthens and stocks continue to fall.
When the markets seem to be falling every day, and your account balances continue to decline, you want to keep a clear and focused head. That means you probably don’t want to panic and sell out of all your long-term positions.
But you also don’t want to sit there like a deer in headlights and watch your portfolio bleed.
Hedging your long-term investments with some small positions that will benefit if the market continues on its current course is a smart way to help ease the pain of a bear market.
Matt ThalmanINO.com ContributorFollow me on Twitter @mthalman5513
Disclosure: This contributor did not hold a position in any investment mentioned above at the time this blog post was published. This article is the opinion of the contributor themselves. The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. This contributor is not receiving compensation (other than from INO.com) for their opinion.

With increasing climate change concerns, rising costs of fossil fuels due to geo-political turbulence and ever-depleting supplies, and growing inclination toward lower operational and maintenance costs, the global automotive industry is fast transitioning toward e-mobility.
Including electric vehicles, charging networks, infrastructure, and energy storage, the global electric mobility ecosystem is projected to grow at 23.7% CAGR between 2022 and 2029. The following chart illustrates the key milestones in the impressive growth trajectory of electric vehicles.
Source: wri.org
While high input and borrowing costs amid record-high inflation and an increasing interest rate environment impeding the EV industry’s growth, EVs are expected to keep replacing Internal combustion engine vehicles at an increasing rate each year.

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However, since the EV industry is expected to bear the brunt of the macroeconomic headwinds in the near term, investors are advised to exercise caution and not to bottom fish NIO Inc. (NIO) and Blink Charging Co. (BLNK), as some technical indicators point to further downside in these stocks.
NIO Inc. (NIO)
China-based NIO designs, develops, manufactures, and sells high-end smart electric vehicles. With a market capitalization of $16.01 billion, the company also offers energy and service packages; design and technology development activities; manufacture of e-powertrains, battery packs, and components; and sales and after-sales management activities. Over the last three years, NIO’s revenue has grown at a 70.6% CAGR.
During the second quarter of the fiscal year 2022 ended June 30, 2022, NIO’s adjusted loss from operations widened 360.1% year-over-year to $351.60 million due to Covid-related challenges and cost volatilities. The company’s adjusted net loss came in at $338.50 million, widening 575.1% year-over-year, while its adjusted net loss per ordinary share worsened by 538.1% from the prior-year period to $0.20.
NIO is expected to report a loss of $0.71 per share for the fiscal year ending December 2022. The company is also expected to incur a net loss during the next fiscal year. Additionally, the company has missed its consensus EPS estimates in each of the trailing four quarters.
NIO is currently trading at a premium compared to its peers, indicating a downside risk of holding the stock. In terms of forward EV/Sales, NIO is trading at 1.64x, 52.2% higher than the industry average of 1.08x. Also, it is trading at a forward Price/Sales multiple of 1.99, compared to the industry average of 0.83.
The stock is currently trading below its 50-day and 200-day moving averages of $16.35 and $19.34, respectively, indicating a downtrend. It has lost 42.8% over the past month to close the last trading session at $9.69.
MarketClub’s Trade Triangles show that NIO has been trending DOWN for all three-time horizons. NIO’s long-term and intermediate-term trends have been DOWN since September 29, 2022, while its short-term trend has been DOWN since October 19, 2022.
Source: MarketClub
The Trade Triangles are our proprietary indicators, comprised of weighted factors that include (but are not necessarily limited to) price change, percentage change, moving averages, and new highs/lows. The Trade Triangles point in the direction of short-term, intermediate, and long-term trends, looking for periods of alignment and, therefore, intense swings in price.
In terms of the Chart Analysis Score, another MarketClub proprietary tool, NIO scored -100 on a scale from -100 (strong downtrend) to +100 (strong uptrend), indicating that the downtrend is likely to continue. Traders should use caution and set stops.

The Chart Analysis Score measures trend strength and direction based on five different timing thresholds. This tool considers intraday price action; new daily, weekly, and monthly highs and lows; and moving averages.
Click here to see the latest Score and Signals for NIO.
Blink Charging Co. (BLNK)
With a market capitalization of $735.74 million, BLNK owns, operates, and provides electric vehicle (EV) charging equipment and networked EV charging services in the United States and internationally.
The company’s segments include the Blink EV charging network (the Blink Network) and Blink EV charging equipment, also known as electric vehicle supply equipment (EVSE), and other EV-related services. BLNK has grown its revenue at a 67% CAGR over the last five years.
In the fiscal 2022 second quarter ended June 30, 2022, BLNK’s loss from operations widened 77.9% year-over-year to $21.96 million, while the adjusted EBITDA deteriorated 93.9% year-over-year to $15.60 million. The company’s net loss widened 68.1% year-over-year to $22.62 million. This translates to an adjusted quarterly loss of $0.41 per share, worsening 32.3% year-over-year.
Analysts expect BLNK’s loss per share for the fourth quarter of the current fiscal year (ending December 2022) to widen 8.9% year-over-year to $0.49. Furthermore, BLNK has missed the consensus EPS estimates in three of the trailing four quarters.
Despite the weak business performance, BLNK is trading at a frothy valuation compared to its peers. In terms of forward EV/Sales, BLNK is trading at 11.89x, 630% higher than the industry average of 1.63x. Also, it is trading at a forward Price/Sales multiple of 13.34, compared to the industry average of 1.26.
The stock is currently trading below its 50-day and 200-day moving averages of $18.40 and $20.18, respectively, indicating a bearish trend. It has lost 20.6% over the past month to close the last trading session at $14.47.

MarketClub’s Trade Triangles show that BLNK has been trending DOWN for two of the three-time horizons. The long-term and intermediate-term trends for BLNK have been DOWN since October 7 and September 22, 2022, respectively. However, its short-term trend has been UP since October 25, 2022.
Source: MarketClub
In terms of the Chart Analysis Score, BLNK scored -85 on a scale from -100 (strong downtrend) to +100 (strong uptrend), showing short-term strength. However, look for the longer-term bearish trend to resume. As always, continue to monitor the trend score and set stops.

Click here to see the latest Score and Signals for BLNK.
What’s Next for These EV Stocks?
Remember, the markets move fast and things may quickly change for these stocks. Our MarketClub members have access to entry and exit signals so they’ll know when the trend starts to reverse.
Join MarketClub now to see the latest signals and scores, get alerts, and read member-exclusive analysis for over 350K stocks, futures, ETFs, forex pairs and mutual funds.
Start Your MarketClub Trial
Best,The MarketClub Team[email protected]