Forecasting stock market trends is notoriously difficult because financial markets are intrinsically volatile and do not follow linear patterns. This project aims to address the problem of predicting the future direction of Netflix (NFLX) stock price, a representative stock with a significant position in the streaming industry. This study utilized daily historical stock price data from May 2002 to October 2024 and constructed a feature set comprising 20 technical indicators. The primary objective of this research is to construct a binary classifier that determines if the stock value will rise over 1% in a t+5 timeframe. To achieve this, this study compared four different machine learning and deep learning models: Logistic Regression, Random Forest (RF), Extreme Gradient Boosting (XGBoost), and Long Short-Term Memory (LSTM). The experimental results show that all models provide predictive capabilities superior to random guessing. Among them, the LSTM model performed the best, achieving an accuracy of 53.73% on the test set, closely followed by XGBoost (53.05%). This result shows the possibility of deep learning models in capturing complex time-series dependencies.
Research Article
Open Access