Netflix Approaches To Hit 100 Million Subscribers


Netflix Approaches To Hit 100 Million Subscribers

Netflix stock was up more than 1% in after hours trading Monday.

What's happening behind the scenes?

Annualized domestic customer growth stopped at 8.2%, while global accounts increased by 39%.

The one blemish in the first quarter for the Reed Hastings-led company was that is fell short of forecasts for subscribers growth - although the 4.95 million new subs left it just shy of the 100-million subscriber level. There are now 44.5 million paid global subscribers, which represents 48% of total subscriber base.

"The company is likely to continue to experience quarter-to-quarter volatility, as both the pace of subscriber additions and the path to respectable profitability remains hard to determine", wrote Dougherty analyst Steven Frankel in a research note, maintaining his neutral rating. "Our focus also is on on-demand, commercial free viewing rather than live, ad-supported programming".

The reporting structure was tweaked to include guidance figures for total revenue. Subscriber numbers will still be provided, but Netflix is growing into a more traditional reporting mold here. The company has a market capitalization of $60.15 billion, a P/E ratio of 325.02 and a beta of 1.27.

"We definitely see an incredible opportunity around the world", Hastings added.

The strategy update was noted in a letter to shareholders as part of the streaming provider's quarterly check-in with Wall Street in which it reported more than $2.6 billion in first-quarter revenue and net income of $178 million. The company now has over 98.75 million subscribers and it expects to pass the 100 million milestone by this weekend. Streaming revenue rose nearly 40 percent year-on-year to Dollars 2.516 billion. Accordingly, earnings should slide back to $0.15 per share. The Internet television network reported $0.40 earnings per share (EPS) for the quarter, beating the Zacks' consensus estimate of $0.37 by $0.03. The good news is: A drop in implied volatility has given investors and traders better odds of making in NFLX stock than they've had in months. Wedbush reissued an underperform rating and set a $60.00 target price on shares of Netflix in a research note on Wednesday, December 21st. Following the sale, the director now directly owns 8,012 shares in the company, valued at $1,180,888.68.