Stock Region Watchlist
Is Netflix a buy after the drop? (+ United’s record year)
Is Netflix a buy after the drop? (+ United’s record year)
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Disclaimer: This newsletter is for informational purposes only and does not constitute financial advice. All investment strategies and investments involve risk of loss. Nothing contained in this newsletter should be construed as investment advice. Any reference to an investment’s past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.
Happy Wednesday, Stock Region Family!
It’s already deep into January, and the market feels undecided—running a marathon one moment, taking a nap the next. Volatility has been a real challenge lately, but in those wild swings, opportunity often appears.
This morning’s watchlist features names that are making serious noise: streaming drama, airlines soaring high (literally), and portfolio comfort food staples.
Let’s dive into today’s highlights.
🍿 Netflix ($NFLX): The Plot Twist
The current talk in the market centers on Netflix, which has stumbled—down about 20% since December. A giant in the streaming space stumbling always commands attention. The drop largely follows Netflix’s pause on share buybacks due to a possible Warner Bros Discovery acquisition.
Pausing buybacks can ruffle some feathers, but if this merger is completed, it could reshape the entire streaming industry. It’s a massive move, and Reed Hastings and team usually play the long game.
Despite recent weakness, Netflix posted a Q4 revenue of $12.05 billion, slightly above expectations. The company aims for an impressive 31.5% operating margin for 2026. The reaction seems like a classic market overcorrection. For anyone who believes in the content and the platform’s staying power, the dip could spell opportunity.
Key observation: Subscriber numbers will be under the microscope. A healthy growth trajectory may turn this sell-off into a gift for believers.
Short-term level: Watch for a break above $83.24 to signal that bulls may be ready to step back in.
✈️ United Airlines ($UAL): Clear Skies Ahead?
Credit where it’s due—United Airlines is quietly raking in profits, even as travelers grumble about flying. The airline just posted record-breaking Q4 revenue of $15.4 billion. That’s a substantial boost, likely driven by those upcharges for premium seats.
A noteworthy strategy here involves focusing on “premium revenue,” persuading passengers to pay for extra perks (up 9%). United is also adding 100 new aircraft and doesn’t seem content to simply survive—growth and efficiency are the goals.
Travel demand remains robust. United has managed profitability and operational efficiency at the same time, which is no small feat.
Momentum view: With 2026 earnings guidance between $12 and $14 per share, United offers a compelling momentum story.
Key price levels: Upside room above $113.50, while a dip below $112.20 could signal caution.
🧀 Kraft Heinz ($KHC): The Portfolio Comfort Food
Sometimes stability trumps excitement. Not every stock needs to be the next high-flyer, and Kraft Heinz fills that role admirably.
In today’s uncertain economy, KHC continues to excel at managing costs and supporting investors with steady dividends. Defensive and reliable, Kraft Heinz proves that boring can be a compliment—especially when high-growth names can swing wildly from day to day. Having a portfolio anchor like mac and cheese has a certain comfort.
Defensive takeaway: Concerned about volatility? Kraft Heinz remains a solid hiding spot. It may not be exhilarating, but it offers peace of mind.
Important levels: Watch for momentum above $22.98; a slide below $22.55 weakens the setup.
This market is tricky. There’s no rule that says an investor needs to chase every opportunity. Sometimes, patience pays off—waiting for preferred levels can often be the smartest trade of all.
Stay disciplined and trade smart!
— The Stock Region Team
Disclaimer: Stock Region is not a registered investment advisor. The content of this newsletter is provided for informational and educational purposes only and should not be construed as professional financial advice. Trading in financial markets involves a high degree of risk and may not be suitable for all investors. You should consult with a qualified financial advisor before making any investment decisions. Stock Region accepts no liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.