History shows buy Netflix for a quick trade after it plunges like this

Netflix shares may be getting hammered on Thursday but research from Bespoke Investment Group shows that history is typically kind to traders who buy at open following a gap lower on poor earnings.

There are 13 days when Netflix shares dropped more than 10% on earnings, Bespoke noted, out of 68 quarters. The “stock rose from the open to the close 8 of 13 times, and each of the last 4 times it has happened,” Bespoke said in a tweet.

Source: Bespoke Investment Group

Netflix dropped nearly 11% in premarket trading from its previous close of $362.44 a share. Despite a big miss in key subscriber metrics, the majority of Wall Street firms continue to recommend buying Netflix shares, with one firm calling this “the Q2 curse.”