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Netflix Stock Surges on Positive Earnings
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Overview
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Netflix's stock surged on earnings, with a positive earnings report and a surge in subscribers, despite a high p/e ratio. The company missed EPS estimates twice in the past year but followed with five consecutive quarters of beating estimates. The trading strategy is to buy weakness to the 'reversion to the mean' at $426.56 and reduce holdings on strength to the annual risky level at $623.13.
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How does Netflix's positive earnings report impact its position in the streaming industry?
What are the potential risks associated with the 'reversion to the mean' and the annual risky level for Netflix stock?
What factors contribute to the company's high p/e ratio and its ability to beat earnings estimates?
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