‘Net Neutrality’ Excites Netflix - 12 November 2014

Stephanie Brown

By: Stephanie Brown

The net neutrality debate has finally reached the Whitehouse, with President Barack Obama calling for a ban on internet ‘fast lanes’. This news is especially exciting to data hogs such as Netflix, Inc. (NASDAQ:NFLX) that recently exchanged bitter words with internet providers concerning lower internet speeds.

Obama especially asked the FCC to regulate internet providers who have been accused of intentionally lowering internet speeds. These remarks had a ripple effect, sending a number of cable stocks tumbling in the market. Netflix, of course could not hide its enthusiasm, and subsequently published a statement on Facebook stating that users should now be allowed to choose winners and losers, on the internet.

A raging battle has been ongoing between Netflix and internet providers in wake of the Federals Appeals Court announcement that the FCC doesn’t have a legal mandate to control internet providers. Obama meanwhile ordered the FCC to crack down on ‘pair prioritization’ and provide users across all platforms with equal internet speeds.

Obama already suggested that the FCC should consider classifying consumer broadband as a public utility under the 1934 communications Act. This approach that Obama is proposing is exactly what Netflix and other industry lobbyists have been fighting for. AT&T however, already threatened to take legal action against the FCC, should it implement Obama’s plan.

Some officials on the other hand, argue that data hogs like Netflix should be forced to bear some of the costs that will be incurred when upgrading infrastructure to support the net neutrality plan. A number of Republicans have already turned down Obama suggestions taunting the plan as a mere government overreach.

Technical Analysis

Netflix Inc. (NASDAQ:NFLX) traded yesterday in a very narrow range, close marginally negative. The stock closed below its 20-Day EMA of $392.51 with its RSI additionally moving downwards, currently at 40.56. Going forward the stock has immediate support near $375 and $370, whereas resistance is approximately $392 and $399.

Actionable Insight

Buy Netflix above $387 for target of $392 and $396, with stop-loss of $384.5.

NFLX 111214

Stephanie Brown
Since graduating from Erasmus University Rotterdam, Stephanie has become a prominent authority in binary options trading, providing first hand market insights and actionable analysis, whilst developing highly profitable customized trading strategies for YesOption clients.

Did you like what you read? Let us know what you think!

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.