SA readers bet on Netflix rebound, continued Microsoft dominance; fret over biotechs
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SA readers showed an affinity for some of the highest-profile names in technology last week, according to an analysis of portfolio additions and deletions.
They added Netflix (NASDAQ:NFLX) in large numbers, taking a bet that the streaming service will bounce back from its recent lows. At the same time, readers were drawn to Microsoft (NASDAQ:MSFT) following a standout earnings report.
On the other side of the spectrum, SA readers continued to show skepticism about some of the more speculative names that have been hammered since the start of 2022. As a result, they walked away from Cathie Wood's ARK Genomic Revolution ETF.
Netflix
Netflix (NFLX) has had a rough couple of weeks. On Jan. 21, the stock plunged nearly 22% after the streaming service's earnings report included disappointing subscriber numbers. The stock continued falling over the next three sessions, adding to a long-term slide for the stock.
All told, in January, NFLX has finished lower in 15 out of 19 sessions, tumbling a total of 36% since the end of 2021. 
However, many SA readers took this decline as a potential buying opportunity. They added NFLX to their portfolios at a rate of more than 5:1 compared to deletions.
These readers weren't the only ones smelling a potential oversold situation. NFLX's only truly good day so far this year came on Thursday, when Bill Ackman's Pershing Square disclosed that it had purchased 3.1M shares of the streaming service following its post-earnings decline. The news sent the stock higher by nearly 8%, pulling off its 52-week low of $351.46
Microsoft
While SA readers tried to take advantage of disappointing data from NFLX to grab a bargain, they turned to another big-name tech play for the opposite reason. Rather than being tempted by wounded names, they gravitated to Microsoft (MSFT) in the wake of strong earnings.
The software giant posted a standout quarter, announcing earnings last week that easily topped expectations, on revenue that surged 20% from last year. The company also gave solid guidance for the current quarter, thanks in large part to strong demand for its cloud products.
As a result, the stock rallied on Wednesday in the first session following the release of its quarterly results. It then added to its gains in the next two sessions, eventually closing Friday at $308.26 -- a gain of nearly 7% from Tuesday's close.
SA readers viewed the earnings beat as a signal that MSFT could outperform many of its tech peers in a market that has been tough on the sector so far in 2022. They picked up the stock at a pace of better than 3:1 compared to removals.
Cathie Wood's ARK Genomic Revolution ETF
Earlier this month, investors turned away from Cathie Wood's ARK funds in great numbers, driven by changing market dynamics that have punished the high-growth speculative plays that the famed investor prefers. The investor flight included heavy removals of her ARK Next Generation Internet ETF (NYSEARCA:ARKW), ARK Space Exploration & Innovation ETF (BATS:ARKX) and ARK Autonomous Technology & Robotics ETF (BATS:ARKQ).
Last week, this process continued, with another Wood-backed fund getting deleted from reader portfolios. They gave up on ARK Genomic Revolution ETF (BATS:ARKG) at a rate of more than 1.1:1 compared to additions.

The flight from the biotech ETF was part of a larger process that saw the sector plunge during the first month of 2022.