SI
SI
discoversearch

   Technology StocksNetflix (NFLX)


Previous 10 Next 10 
To: Glenn Petersen who wrote (1563)7/15/2017 9:58:41 AM
From: Glenn Petersen
   of 1600
 
Netflix’s DIY Strategy Should Pay Off Overseas

The company is increasingly self-producing shows and movies, which will allow it to offer more titles in more markets.

By Emily Bary
Barron's
July 13, 2017 12:24 p.m. ET

Netflix is spending a lot of money on content, and investors aren’t quite sure whether that’s a liability or a competitive advantage. On one hand, Netflix is burning cash quickly, but on the other, the company is trying to make a big push into new markets and needs more titles to succeed there.

On Thursday, Morgan Stanley Benjamin Swinburne raised his price target on Netflix shares to $185, based partly on his belief that Netflix is making smart choices about programming rights, which could yield strong results internationally. His price target implies a 16% premium to today’s level.

Swinburne is encouraged by Netflix’s decision to self-produce more content, since the company owns the global rights to such programming. Morgan Stanley has found that Netflix achieves greater subscriber penetration in markets where it makes more titles available.

“As Netflix shifts to more globally owned originals or global licenses, the title count will grow, which history tells us should help ramp penetration,” he wrote in a note to clients. Still, the company will have to make sure that new titles remain high quality.

A look at the revenue that traditional media companies are able to generate based on the value of their net content assets suggests there’s room for Netflix to improve. Netflix brings in a dollar of revenue per dollar of net content assets, Swinburne says, while legacy companies are able to bring in twice that -- or more. (Net content assets is a measurement of the value of Netflix’s content as determined by accountants.)

He notes that Netflix may have trouble reaching that ratio, given that traditional media giants rely heavily on the most profitable regions and are able to sell ads. “Nevertheless, the implications would suggest a dramatic opportunity to drive earnings,” Swinburne writes.

Big Picture: Netflix is making smart programming choices that could pay off internationally, an analyst argues.




barrons.com

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: Glenn Petersen who wrote (1564)7/15/2017 11:36:12 AM
From: Sr K
   of 1600
 
Netflix added "Lion" in the past few days.

It didn't win a major award, but it was in contention.

imdb.com

Amazon has "Moonlight", the Oscars Best Picture.

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: Sr K who wrote (1565)7/15/2017 11:56:18 AM
From: Glenn Petersen
   of 1600
 
Both good movies.

I'm surprised that Amazon has not made greater inroads into Netflix's market share given the amount of money they have poured into their offerings. Obviously, it is part of Jeff Bezos' long game.

I am also surprised that no one (Apple, Disney?) has made an offer to buy Netflix.

Share RecommendKeepReplyMark as Last ReadRead Replies (2)


To: Glenn Petersen who wrote (1566)7/15/2017 8:01:18 PM
From: Sr K
1 Recommendation   of 1600
 
Reed Hastings said in answering a question in a recent quarterly Interview that to assess the opportunity, it's not what they are doing, it's what others quicker to International have reached, so he compares what Google YouTube and Facebook have reached (900 million MAU to a billion, and growing). He thinks the opportunity for Netflix is the same, to 80% International (and 20% U.S).

Simple math on the expected growth in Q2 in that 7/14 Barron's article, U.S.: International rounds to 20:80.


631,000 19.53%
2,600,000 80.47%

=3,231,000

Share RecommendKeepReplyMark as Last Read


To: Glenn Petersen who wrote (1566)7/15/2017 8:12:12 PM
From: Sr K
   of 1600
 
Amazon is getting a percentage of Netflix revenue, possibly as high as Apple gets (30%). They've blended the references to Netflix on the Amazon Fire TV Stick, and Netflix allows its App on the Fire Phone, just as HBO and Showtime and CBS and others have.

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: Sr K who wrote (1568)7/16/2017 12:48:26 AM
From: d[-_-]b
   of 1600
 
Amazon is getting a percentage of Netflix revenue

Not to mention the fact Netflix runs entirely on Amazon AWS hosted servers.

Always wondered why they try to compete against their biggest customer.

Share RecommendKeepReplyMark as Last Read


From: Glenn Petersen7/17/2017 4:23:26 PM
3 Recommendations   of 1600
 
Netflix adds 5.2 million users, crushing estimates — stock soars nearly 9%

  • Analysts polled by Thomson Reuters expect Netflix to post 16 cents a share in adjusted earnings and $2.76 billion in revenue.
  • The company expected streaming net additions of 3.2 million.
  • There is mounting competition in the digital streaming space, as Amazon ramps up content spending, and Apple dips its toe into original content.

Anita Balakrishnan | @MsABalakrishnan
4 Mins AgoCNBC.com

Netflix reported second-quarter earnings on Monday that fell just shy of analyst estimates, and revenue that exceeded expectations as user growth exploded.

The entertainment technology company added 5.2 million, blowing away Wall Street's estimates of 3.23 million during a historically weak quarter amid the return of marquee content like "Orange is the New Black."



Mark Neuling | CNBC
Reed Hastings, CEO of Netflix.
____________________________

Results vs. expectations
  • EPS: 15 cents per share vs. 16 cents per share, adjusted, expected by a Thomson Reuters consensus estimate
  • Revenue: $2.79 billion vs. $2.76 billion expected by a Thomson Reuters consensus estimate
  • User growth (net adds): 5.2 million (1.07 million domestic, 4.14 million international) vs. 3.23 million total streaming (631,000 domestic, 2.59 million international) expected by a FactSet estimate.
That's compared to earnings of 9 cents per share on revenue of $2.11 billion in the year-ago period.\
  • Q3 guidance, EPS: 32 cents vs. 23 cents per share expected by a Thomson Reuters consensus estimate
  • Q3 guidance, revenue: $2.97 billion vs. $2.87 billion expected by a Thomson Reuters consensus estimate
  • Q3 guidance, net adds: 4.4 million vs. 3.925 million total streaming expected by Street Account
User growth key amid mounting competition

Since Netflix's last earnings report, new seasons of popular series "House of Cards" and "Orange is the New Black" hit the small screen. "13 Reasons Why" also garnered buzz after it was unveiled on the last day of the first quarter.

Netflix's financial report comes on the heels of the 2017 Emmy nominations, which recognized Netflix series such as "Master of None," "Unbreakable Kimmy Schmidt" and "Stranger Things" in the company's 91 nominations.

But the nominations also highlighted the mounting competition in the digital streaming space, as Amazon ramps up content spending, and Apple dips its toe into original content with shows like "Planet of the Apps." CEO Reed Hastings has told CNBC that Amazon is an " awfully scary" foe.

Last quarter, Netflix said it would spend over $1 billion in 2017 on marketing costs alone, projecting that the company would have negative free cash flow for "many years" as it invests in original content, including an estimated $2 billion in negative free cash flow this year.

Netflix has shuffled some top executives in recent months, adding chief product officer Greg Peters and feature film boss Scott Stuber. The entertainment technology company also continued its international expansion, where it gets the bulk of its user growth, by adding support for more languages.

cnbc.com

Share RecommendKeepReplyMark as Last Read


From: JakeStraw7/18/2017 9:18:14 AM
   of 1600
 
Here's how Netflix can rally another 70% to $300, according to Bank of America
cnbc.com

Share RecommendKeepReplyMark as Last Read


From: Sr K7/21/2017 2:29:05 PM
   of 1600
 
ATH about an hour ago

187.63
now 187.41

Share RecommendKeepReplyMark as Last Read


From: JakeStraw7/26/2017 12:13:11 PM
1 Recommendation   of 1600
 
Netflix, Inc. had its price target raised by analysts at BTIG Research from $170.00 to $225.00.

Share RecommendKeepReplyMark as Last Read
Previous 10 Next 10 

Copyright © 1995-2017 Knight Sac Media. All rights reserved.Stock quotes are delayed at least 15 minutes - See Terms of Use.