Short Volume of Netflix Stock Surges; Is a Crash for NFLX on the Horizon?
April 15 was a particularly strong day for the streaming giant Netflix (NASDAQ:NFLX) as its stock rallied 4.83% and became one of the strongest S&P 500 performers of the session.
For all the positivity, traders appear less than confident that NFLX shares’ good fortunes will persist as the day simultaneously saw their short volume ratio rocket to two-week highs of 65.17, per the data Finbold retrieved from Fintel on April 16.
This marks a notable increase from the Monday ratio of 59.57 and a major rise from Friday’s 44.70.
The spike may or may not indicate that a downward correction is imminent, as performance in the last 14 days amply demonstrates that both a continued rally and a crash are in the cards. The previous regional high of 60.88 came on April 8 and directly preceded a one-session surge from $870.40 to $945.47.
On the flip side, the April 3 ratio of 53.16 came a day ahead of a $917.05 to $855.86 plunge.
The actual direction for NFLX stock will likely be decided by the upcoming earnings, scheduled for Thursday, April 17.
The Tuesday rally was driven by a combination of optimism about the filing and the revelation that the streaming giant hopes to hit a $1 trillion valuation by 2030.
Still, April 16 – and April 17 – volatility remains likely as the pattern of equity making wild swings right before and right after the earnings, no matter the actual results, has been relatively common in the last 12 months.
Another possible vector for uncertainty comes from the executive branch, as the Trump administration’s tariff policy has been as unpredictable as it has been forceful.
For example, the semiconductor giant Nvidia (NASDAQ:NVDA) appeared poised for a strong second-quarter (Q2) performance after Trump endorsed the company’s supercomputer efforts, only to plunge in the extended session as the White House announced new China chip export restrictions.
Whatever comes next for Netflix stock, its performance in 2025 has been choppy but generally positive.
Unlike many other major companies, NFLX is 10.10% up year-to-date (YTD) and recorded its latest close at $976.28.
Similarly, though the uptrend has weakened compared to the latest full session, the Wednesday pre-market saw it remain in the green as it climbed 0.29% to its press time price of $979.14.
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