AI-driven market sentiment hurts Netflix; technical rejection at 200-day MA indicates potential for new lows.

Moving on to Netflix, what the hell happened to Netflix this week? At the beginning of the week, it closed at $80. The stock fell by 10%. I think the AI-driven doomsday obsession isn't good for Netflix.

The stock is now approaching $71. You want to see that from a technical perspective as well , as we may be recording a new low.

Wells Fargo downgrades Netflix to "Underweight" due to the risks of participation. This comes at a time when Evercore has raised its price target by 110. I think Evercore has clients who are trying to sell the shares, and perhaps Wells Fargo is trying to buy them.

This is often what you should conclude when you see these investment banks making recommendations. They are not doing it for you. They are not doing that in your best interest .

Wells Fargo has customers. When you review Wells Fargo's profits, you'll find they have a large wealth management business . They are not the size of JPMorgan or Goldman Sachs by any means, but they have clients there.

So when they say they are downgrading a stock, it usually means they have customers who want to buy it. When it comes to Evercore, they have customers who are trying to sell it.

Therefore, they are trying to raise the stock price by raising the target price.

Who knows what will happen, but Netflix will most likely announce its earnings in about a month. This comes as Netflix, Amazon and YouTube are trying to acquire more rights to stream sports.

Here in North America, there are rules that mandate certain sports be shown on traditional television broadcasts, essentially fulfilling a bygone era of television , so to speak.

Therefore, these companies are trying to obtain more exclusive rights to football and the like. I believe the federations will agree to that immediately.

Netflix tried to rise towards its 200-day moving average, and notice how it was immediately rejected. In fact, she didn't even get to go back to him completely. Now Netflix might want to create a new low.

You should have some support at around $70 where the stock is trading now. The appearance of some green candles doesn't surprise me, but this is a very bad move by Netflix.