NFLX up 40%?
While AAPL plunged about 12% after a lackluster release of its earnings report, NFLX came out one of the biggest winners in Q4 with a staggering 40% soar from the previous quarter at $146.
- Netflix reports 27 million subscribers over the US, up about 2 million from Q3.
- Despite market skepticism suspecting loss, it came back strong with a $7.9mm in net profit this quarter -- 13 cents per share
- Was at $300 in 2011, tanked to ~$100 after DVD business fiasco
- Producing its own programs -- "Arrested Development" already a success; Two seasons of "House of Cards" budgeted at $100mm, set to premier soon
- Carl 's -- activist NFLX investor -- position doubled from $320mm to $700mm
Bits from CEO Reed Hastings:
“Our growth and our competitors’ growth shows just how large the opportunity is for Internet TV, where people get to control their viewing experience,”
“The virtuous cycle for us is to gain more subscribers, get more content, gain more subscribers, get more content,”
Hadn't paid much attention to the stock, but I wonder why analysts were so bearish on NFLX? It's no secret that streaming service industry is growing explosively and Netflix is the clear leader. Maybe hulu+ is the only substitutable competitor, but, as far as I know, they don't directly compete on contents.. and I don't see Apple TV, Google Play, orstreaming getting up there anytime soon. Tablet market expanding certainly helped. My only qualm about personally using Netflix is that sometimes they don't have some of the most classic movies of all time that should be obvious for some reason.
What do you guys think? Is the window still open on NFLX to jump in?