Weekly Equities Forecast: Netflix, Goldman Sachs & ASML

Netflix Q3 earnings preview

Netflix will release its Q3 earnings report on October 17 as the share price trades at an all-time high. Expectations for the quarter are EPS of $5.16 on revenue of $9.77 billion, significantly up from EPS of $3.73 and revenue of $8.5 billion in the same period last year.

The streaming giant is expected to post stronger growth than its peers as it continues to benefit from the password crackdown and ad-tiered approach.

Netflix has invested heavily in content that has performed well with global audiences and provided Netflix the opportunity to start raising prices. The company may choose to announce price increases at a later date, but they might be touted on the 17^th

subscriber numbers will also be in focus. However, this is the penultimate report where subscriber figures will be included, as Netflix has said it will scrap reporting on subscribers from 2025. Netflix has seen strong subscriber growth so far this year, with Q2 figures rising by 8.05 million worldwide to 277.65 million.

Analysts broadly bullish on the stock, with the vast majority having a buy recommendation. The stock price is currently outperforming the average target price of $721. Any negative surprise could weigh on the share price.

How to trade NTFLX earnings?

Netflix has been trending higher across the year, reaching a fresh all-time high of 736 on Friday. Buyers will look to extend gains towards 750 and new highs. Minor support can be seen at 700, with a break below here negating the near-term uptrend and opening the door to 660, the September low.

Goldman Sachs Q3 earnings preview

Goldman Sachs will release earnings on October 15th as the share price attempts to break fresh record highs. Earnings come after several banks reported on Fridays to kick off earnings season, with JP Morgan and Wells Fargo beating expectations.

Goldman Sachs is expected to report EPS of $7.31 on revenue of $11.79 billion. The results come from Goldman Sachs' posted profits, which soared 150% compared to a year ago in the second quarter as its investment banking surged. CEO David Solomon said we are in the early innings of capital markets and M and a recovery, which bodes well for the investment bank's outlook.

Client activity and market volatility were decent in Q3. This, combined with the likelihood of a soft landing for the US economy, cooling inflation, and easing monetary policy, could put Goldman Sachs on track for a solid Q3.

Mergers and acquisitions in Q3 markedly improved after a subdued few years prior. Deal volume and value are all expected to provide tailwinds for the firm. Meanwhile, net interest income is not likely to have been impacted much by the Federal Reserve cutting interest rates by 50 basis points.

How to trade GS earnings?

Goldman Sachs recovered firmly from its August and September lows but has failed to rise above the 510-514 resistance zone to reach fresh all-time highs. A rise above this zone opens the door to clear skies and fresh record levels. Failure to rise above this zone could see the price retest to 485, the October low, and below here, 458, the September low, comes into play.

ASML earnings preview

ASML is set to report its latest quarterly results on October 16. ASML is a semiconductor equipment company, meaning it is an essential supplier key to making the most advanced AI chips for training large language models. In other words, without ASML’s machines, there are no AI chips.

ASML considers 2024 a transition year and doesn't expect much revenue growth as it gears up to sell its latest ultraviolet lithography machinery, EUV, the necessary technology for printing the most advanced chips. However, ASML expects 2025 to be a big year.

Q2 net sales were €6.24 billion, down from €6.9 billion in the previous quarter. In 2023, the company's net income declined to €1.58 billion from €1.94 billion the previous year.

ASML’s technology means it's well placed to benefit from longer-term megatrends such as AI; however, some of its key customers are facing their own challenges. Investors will look for clues over next year's outlook when growth is expected to accelerate.

How to trade ASML earnings?

ASML Rose to a record high of 1000 in early July before falling lower, forming a series of lower highs. More recently, the price has recovered from the September low of 679 and is testing resistance at the 50 SMA at 770. A rise above her exposes the 200 SMA at 835. Above here, buyers could gain traction and look back up towards record high levels.

On the downside, support can be seen at the 660 -670 zone. Below 630, the 2024 low comes into play.

From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.

City Index is a trading name of StoneX Financial Pty Ltd.

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.

While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.

StoneX recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets.

It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com/en-au/terms-and-policies/, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. Our Target Market Determination (TMD) is also available at www.cityindex.com/en-au/terms-and-policies/.

StoneX Financial Pty Ltd, Suite 28.01, 264 George Street, Sydney, NSW 2000 (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.