Is there anything more annoying than when you sit down to watch a show or movie on Netflix (NFLX) and you get the dreaded buffering symbol where the show pauses until the connection is strong enough to load? A lot of people around the country from the coast of Louisianna right up north through the coast of Maine are likely experiencing that buffering a bit more frequently as Hurricane Ida disrupted power and internet connections. Investors in Netflix (NFLX) stock have been no strangers to the buffering phenomenon recently as the stock has been stuck in a trading range seemingly as long as the movie “The Never Ending Story.” From July of last year through Wednesday, NFLX traded in a range within a high of $593.29 to a low of $458.60 for a spread of 29.4%. Yesterday, though, NFLX finally broke out of that range trading as high as $598.76.
29.4% may not sound like too small of a range, especially for a stock with a market cap of over $250 billion. For a stock like NFLX, though, 29.4% was the narrowest one-year range the stock had ever traded within. The chart below shows the historical one-year trading range for NFLX since its IPO in 2002. Prior to this year, NFLX had never traded within a range of 50% or less over a rolling one-year period, but as of this week, the range had narrowed to nearly half that. Just like with the movies, though, usually when it buffers once, it runs through a number of fits and starts before it starts running smoothly again. Similarly, even though NFLX started to move yesterday, today it has drifted right back into the range it was trading in all this time. Click here to view Bespoke’s premium membership options.