Netflix, Inc. (NFLX) Stock Offers Traders a Juicy Opportunity

Netflix, Inc. (NFLX) Stock Offers Traders a Juicy Opportunity

Netflix, Inc. (NFLX) Stock Offers Traders a Juicy Opportunity

Netflix said it expects to add 3.2 million new customers in Q2 and to have a total of 8.15 million net adds in the first half of the year - down from 8.42 million in H1 2016.

Previously the company had projected net gains of 1.5 million in the U.S. and 3.7 million internationally.

The stock fell 3.47 percent to $142.15, losing momentum after touching a record high in extended trade on Monday following its results, the first March-quarter report from a major USA technology company.

Indeed, Netflix's flagship series, "House of Cards", delayed the premiere of season 5 from the first quarter to the second quarter.

The massive subscriber growth is a testament to how much the video streaming service has changed the entertainment landscape since its debut ten years ago.

"We have a large market opportunity ahead of us", Netflix said.

Netflix growth was slower than expected in the first 3 months of this year. As for the competition, Netflix isn't phased by the advent of virtual MVPDs such as Sling, PlayStation Vue, DirecTV Now, YouTube TV, and Hulu's forthcoming service. Netflix concluded March with nearly 48 million users outside the U.S.

Netflix added 1.42 million domestic subscribers, slightly below guidance and consensus of 1.5 million, and directionally consistent with Baird's quarterly US survey which had suggested potential USA weakness.

Netflix, a company that has long concentrated on on-demand, commercial-free viewing, is going to continue its efforts in that area, rather than expanding in the direction of live, ad-supported programming. Netflix guided to Q2 revenue of $2.755 billion slightly above Baird's $2.72 billion estimate, with EPS of $0.15 below the firm's $0.21 estimate and consensus.

The streaming service had previously forecast an addition of 5.2 million subscribers worldwide in Q1 2017 to reach 99 million. Analysts found that Los Gatos earned $178 million on revenue of $2.6 billion in the first three months but Netflix will make $482 million on revenue of more than $11 billion for the entire year. Operating margin should dial back to approximately 4.4% because of a heavier production schedule; the full-year margin target remains at 7%. The company plans to spend more on original content this year and reduce outlays on licensed material such as movies.

Recommended News

  • HSBC Reiterated Barclays PLC (LON:BARC) As 'Buy'

    Also, insider John Browett purchased 665 shares of the stock in a transaction dated Friday, February 24th. Del Taco Restaurants Inc (NASDAQ:TACO) has risen 18.60% since September 9, 2016 and is uptrending.

    Russian Federation responsible by proxy for Syria chemical deaths - Fallon

    He also said the top USA priority in the region hasn't changed and remained the defeat of Islamic State militants. Just days prior, the regime used the airbase to launch a chemical weapons attack on a nearby rebel-held city.
    Neomorph Revealed In New 'Alien: Covenant' Pics

    Neomorph Revealed In New 'Alien: Covenant' Pics

    The third, and perhaps most interesting image shows a mysterious figure standing on the Engineer's home planet. Everything released to-date for the forthcoming Alien: Covenant film has looked wonderful .
  • Iran's Hassan Rouhani registers for second term in upcoming presidential elections

    One big question is why Raisi would risk a run for the presidency if he has ambitions to become supreme leader as many speculate. Raisi is also prosecutor of the Special Cleric Court, which deals with the offenses of clerics.

    Oil slides 3.8 percent to two-week low on U.S. gasoline build

    Oil prices will increase as demand improves, chipping away at oil inventories in the second half, he said. US inventories of 532 million barrels remained near all-time records reached in March.
    Miami's Chen has no-hitter through 6 innings vs. Seattle

    Miami's Chen has no-hitter through 6 innings vs. Seattle

    Brad Ziegler got through the eighth inning with the no-hitter intact despite a pair of tricky grounders that almost became hits. Marlins: IF Adeiny Hechavarria (oblique) will likely join the Marlins in San Diego for their weekend series against the Padres.
  • Putin-linked think tank drew up plan to sway US election: documents

    Putin-linked think tank drew up plan to sway US election: documents

    Putin has repeatedly denied that his government had any hand in trying to determine the USA election. After Reshetnikov retired from the institute in January, Putin named Fradkov as his replacement.
    Trump spokesman Sean Spicer says he 'screwed up' with Hitler comments

    Trump spokesman Sean Spicer says he 'screwed up' with Hitler comments

    A spokesman for German Chancellor Angela Merkel said comparing Nazi war crimes to present-day situations "leads to nothing good". The attack in northern Syria left almost 90 people dead, and Turkey's health minister said tests show sarin gas was used.

    How Fox News broke the Bill O'Reilly story to its viewers

    O'Reilly met the Pope in a VIP line at the Vatican and shook hands with the Catholic leader. O'Reilly's departure is the second sex scandal to rock the network in less than a year.
  • Pence Talks Trade in Japan

    Pence says Trump will also attend the East Asia Summit that follows the regional meetings in the Philippines that same month. This change in message, if translated into a firm policy of not negotiating with North Korea, could have huge implications.

    BP well in Alaska leaking gas after unknown incident

    Alyeska Pipeline Service Co.is a joint partnership between North Slope's producers Exxon Mobil Corp., BP Plc, and ConocoPhillips. Alaskan and federal officials had identified two leaks spewing methane gas which is linked to climate change.

    Hinting At Support, Obama Calls Centrist French Presidential Candidate Macron

    The first round of the French presidential election is scheduled for this Sunday, while the run-off is set for May 7. While prosecutors haven't identified the potential targets, Le Pen said on BFM television that "we are all targets".

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.