Technology StocksNetflix (NFLX)

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From: ProThinker9/28/2017 10:23:57 PM
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Netflix looks overvalued at current levels based on the following indicators.


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From: Sr K10/5/2017 1:00:59 PM
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Netflix Increases Price 10% for Its Most Popular U.S. Plan

By Gerry Smith and Lucas Shaw

October 5, 2017, 10:07 AM EDT Updated on October 5, 2017, 12:52 PM EDT

> Shares rise on optimism higher price won’t hurt subscriptions

> Cancellations unlikely with service cheaper than Hulu, YouTube

Netflix Inc. is raising the price of its most popular U.S. service plan by 10 percent to $11 to help pay for the streaming giant’s ambitious TV and movie budget.

Netflix shares surged as much as 4.5 percent to an intraday record, a sign that investors are confident the company can keep expanding its subscriber base while charging more for its products.

Besides the higher rate for the most widely used package, Netflix boosted its premium plan 17 percent to $14. Both offer high-definition viewing and let families watch on multiple screens. The basic $8 plan will stay the same. The company will begin notifying current users on Oct. 19 and roll out the price hike over several months.


Netflix’s business is sensitive to even small price changes. The streaming-video provider announced an increase of $1 a month for its most popular streaming subscription in 2015 for new customers in the U.S., Canada and parts of Latin America. That caused subscriber growth to slow to a three-year low, the company said in July 2016, sending shares plummeting.

In 2011, the company lost 800,000 U.S. customers in one quarter after splitting its streaming and DVD services and effectively doubling the cost for some consumers.

Customers Willing

In both cases, Netflix ultimately was able to keep growing, proving customers are willing to pay more for its exclusive programming. The company ended the second quarter with almost 104 million users, with a majority outside the U.S.

The streaming service is already profitable in the U.S., and raising prices again at home will improve margins. A few foreign territories also produce profit.

Netflix subscribers are unlikely to cancel in droves after this latest price increase because the service offers more content now and is cheaper than many new rivals, analysts said.

“We believe that Netflix’s pricing power has increased materially over the past few years as their content slate and technology has improved,” Mark Mahaney, an analyst at RBC Capital Markets, said in a note Thursday.

With new online TV services from Hulu and YouTube entering the market at about $40 a month, Netflix seems relatively inexpensive, said Bloomberg Intelligence analyst Geetha Ranganathan.

“I don’t think people are going to be as price sensitive,” she said. “Netflix has become a must-have for most people. The breadth and depth of the content is incomparable.”

Programming Spending

Netflix is spending $6 billion on programming this year, and will increase that to $7 billion next year. The company has declined to set a cap on how much it will spend to lure viewers away from other TV networks, and Chief Financial Officer David Wells has suggested the company may soon spend $20 million on a single episode of TV. The sixth season of HBO’s “Game of Thrones” was reported to have cost $10 million per episode.

While Netflix reports a profit every year, it lost $2.1 billion in free cash flow in the 12 months ending June 30, due to spending on original series. Netflix will release more than 200 of its own pieces this year, ranging from TV shows and movies to documentaries and stand-up specials.

Shares of Los Gatos, California-based Netflix gained 4.1 percent to $192.03 at 12:42 p.m. in New York.

While the company has overcome resistance to raising prices in the U.S., the existing monthly fee limits its potential market in poorer parts of the world. Netflix expanded to most of Asia, Africa and the Middle East in January 2016, and has yet to sign up many customers in those regions.

The company would like to derive more than 80 percent of its customers from outside the U.S., Chief Executive Officer Reed Hastings has said.

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From: FUBHO10/5/2017 1:21:40 PM
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Netflix is raising prices in US starting today: standard $9.99 plan will be $10.99/month; premium $11.99 plan will be $13.99/month; $7.99 plan does not change — Netflix will raise prices for its US subscribers starting Thursday, the company confirmed to Business Insider.

More: Mashable, TechCrunch, Fast Company, USA Today, International Business Times, DSLreports, Fortune, iMore, Gizmodo, Ars Technica, 9to5Google, MacRumors, Engadget, CNET, Reuters, The Verge, Ubergizmo, Investor's Business Daily,, Fortune,, Android Central, Tech Narratives, InvestorPlace, iPhone Hacks, FierceCable, Polygon, Lifehacker, AFTVnews, and Variety

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From: hollyhunter10/8/2017 2:25:29 PM
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Bullish crossover in MACD and Stochastic oscillator. Looking for breakout at 198.92 for a run up to 232.34.

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From: JakeStraw10/12/2017 11:14:50 AM
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Netflix, Inc. had its price target raised by analysts at Stifel Nicolaus from $200.00 to $230.00. They now have a "buy" rating on the stock.

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From: Tonnyman10/13/2017 4:59:40 PM
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Netflix stock is steadying at record levels, and has become the favorite among investors ahead of third quarter data. Looks like it's set to beat estimates once again.

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From: Glenn Petersen10/14/2017 10:05:02 PM
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NFLX reports after the close on Monday:

Netflix earnings preview: Will a price hike and Disney showdown hamper growth?

Fast Company
October 13, 2017

Photo: Flickr user r. nial bradshaw]

Netflix is set to report its latest earnings on Monday. Those quarterly headlines tend to contain positive news for the streaming video giant–about its subscriber growth, especially–but what should we expect as the company preps its letter to investors for Q3?

  • $2.97 billion. That’s how much quarterly revenue Netflix is expected to report, according to TheStreet, a 30% increase year over year. The company is expected to report earnings per share of 32 cents, up from 12 cents last year.
  • More international growth. Since it announced its “Netflix everywhere” expansion to 130 new countries early last year, most of its subscriber growth has (unsurprisingly) come from outside the U.S. Of the 4.45 million new subscribers Netflix is expected to announce, the vast majority will once again come from overseas. Asia is especially important for Netflix here.
  • Will the price hike affect growth? As announced this month, the price of Netflix’s standard tier will go up $1, while its premium 4K tier will increase by $2. While it’s too early to tell if the monthly price increases will affect Netflix’s subscriber numbers (as increases have in the past), listen carefully to see if CEO Reed Hastings and company try to adjust investor expectations around its future subscriber growth. It will also be interesting to see how they address the issue of Disney removing its content from the service. Netflix’s stock took a hit when Disney’s move was announced in early August, but it has since bounced back.
Whatever happens, Wall Street seems optimistic. Netflix shares passed the $200 mark for the first time earlier today. The company will deliver third-quarter 2017 financial results on Monday after the closing bell

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To: Glenn Petersen who wrote (1597)10/15/2017 10:20:14 PM
From: Glenn Petersen
1 Recommendation   of 1744
Netflix Has Secret Weapon in Hollywood’s Multibillion-Dollar Arms Race

By Jan Dawson
October 12, 2017 9:45AM PT

CREDIT: Variety

Much has been made of Netflix’s massive and fast-growing content budget, which the company estimates will be $7 billion for 2018. Financial analyst firm MoffettNathanson recently calculated Netflix is in fifth place in overall spending across film and TV — far behind traditional U.S. TV players NBCUniversal, Fox, Disney and Time Warner, but ahead of CBS, Amazon, Hulu, Facebook and Apple.

When it comes to non-sports TV programming expense alone, however, Netflix is very much in the top tier, coming in second, behind only NBCU. Yet Netflix’s revenue in the U.S. is still just a fraction of those of its major competitors. Even in just the TV business, NBCU, Fox and Disney are each roughly twice Netflix’s size, which allows them to spread that programming expense across a much larger revenue base.

How, then, can Netflix sustain its current level of spending on content and remain competitive? The secret lies in its international growth, something the big U.S. TV companies can’t tap into nearly as effectively.

Based on each company’s 10-K filing for the most recent fiscal year, only one of the traditional TV companies — Discovery — has a more even balance of domestic and international revenue than Netflix; the vast majority are significantly more U.S.-skewed.

Bear in mind, too, that most of these companies generate more international revenue from their film units than from their TV units, so their programming expenses for television are in many cases very U.S.-centric.

Netflix is also by far the fastest-moving company when it comes to globalization: Its international share of streaming revenue was just 10% five years ago, but has risen to 41% in the past year. That balance will continue to shift, since the company’s base of subscribers is greater overseas than in the U.S.

Why does all this matter? Because Netflix’s content investment is increasingly international in nature — the company is filming projects overseas, producing foreign-language programs and then making them available in many of its markets around the world, allowing it to spread the cost of investment across its entire base of more than 100 million streaming subscribers rather than just the half that’s in the U.S.

Given that the entire traditional pay-TV universe in the States is less than 100 million subs, no TV company whose investment is primarily dedicated to the U.S. market can subsist on that audience. As such, Netflix can continue to grow spending on content above and beyond the levels of even the largest U.S.-centric player while amortizing that cost over its entire massive subscriber base.

That international edge is going to become even more important as traditional TV revenues decline in the U.S., leaving the legacy players scrambling to find new sources.

Jan Dawson is the founder and chief analyst at Jackdaw Research, an advisory firm for the consumer technology market.

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From: Tonnyman10/16/2017 7:01:05 PM
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The recent price hike and the Disney showdown had little impact on Netflix's earnings this time. The winning streak continues by adding 5.3 million more subscribers.

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From: Glenn Petersen10/16/2017 8:36:26 PM
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Another solid quarter from NFLX. The shares are up about two and a half points in AH trading.

Netflix adds another 5.3M subscribers as stock price reaches all-time high after Q3 earnings

by Taylor Soper
on October 16, 2017 at 1:36 pm

Netflix CEO Reed Hastings speaks at the Consumer Electronics Show in January. (GeekWire photo/Kevin Lisota)

Netflix shares were up more than 2 percent in after-hours trading as the streaming giant beat expectations for both revenue and subscriber growth.

Netflix posted $2.99 billion in revenue for Q3, which slightly beat expectations, and earnings per share of $0.29, which was just below the $0.32 EPS expected.

The company added 850,000 new subscribers in the U.S. and 4.45 million internationally, which crushed expectations of 784,000 and 3.62 million, respectively.

“We are growing nicely across the world and are on track to exceed $11 billion in revenue in 2017,” Netflix said in its earnings release. “Internet entertainment is delighting consumers, and we are staying at the forefront of this once-in-a-generation opportunity.”

The 5.3 million in net subscriber additions marks the strongest Q3 subscriber growth in Netflix history; it’s also up from 3.6 million additions in the year-ago quarter. The company now has 109 million subscribers, with just over half coming from outside the U.S.

Netflix continues to spend big on original content, with costs expected to reach $7-to-8 billion next year, the company noted in its earnings release today. Netflix, which just announced price increases, is battling competitors like Amazon, Apple, Hulu, and others in the streaming space.

“It’s an exciting period and both media and technology companies see the same big opportunity as we do,” Netflix noted in its release. “We have a good head start but our job is to improve Netflix as rapidly as possible to please our members by earning their viewing time and to stay ahead of the competition in the decades to come.”

Netflix expects to add another 6.3 million subscribers in the fourth quarter.

Shares eclipsed $200 for the first time last week and are now at $206 per share in after-hours trading.

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