Monday, February 23, 2026

Tomorrow AXP or NFLX which will be more likely rebound

Based on recent performance data as of February 23, 2026American Express (AXP) appears more likely to rebound tomorrow than Netflix (NFLX), though both are currently in short-term downtrends.
American Express experienced a sharp 8.95% drop today, closing at $321.24. This significant sell-off was driven by a marginal earnings miss and concerns over high investment expenses, yet management remains confident in 9-10% revenue growth for 2026. The magnitude of today's drop often attracts "dip buyers" looking for a technical bounce-back.
Netflix, by comparison, is currently embroiled in a high-stakes bidding war for Warner Bros. Discovery. The stock fell 3.37% today to $76.02, but high implied volatility (111.55%) and trader concern regarding the February 23 waiver deadline and upcoming shareholder votes suggest continued downside risk rather than an immediate recovery.
Key Insights
  • AXP's Technical "Oversold" Potential: AXP is currently trading near its 52-week low of $317.15 set today. A drop of nearly 9% in a single session for a mega-cap stock frequently leads to a corrective rebound the following day as investors re-evaluate the solid 2026 guidance.
  • NFLX's Strategic Uncertainty: Netflix is facing pressure from a competing $108 billion bid from Paramount for Warner Bros assets. Analysts have recently lowered price targets to a range of $94–$138, and technical indicators like the 14-day RSI (34) suggest the stock has not yet reached a clear bottom.
  • Fundamental Health: Despite the recent drops, both companies maintain strong fundamentals for 2026. AXP expects record card fee income, while NFLX is forecasting a doubling of its ad revenue to $3 billion.

No comments:

Post a Comment