It was Netflix at the open and Netflix at the close, as the internet streaming TV giant conquered the stock market Tuesday. The company's top line numbers beat analysts' estimates, while its earnings numbers were in line with the guidance issued.
When a company relies nearly exclusively on subscribers for revenue, it would make sense that there would be a saturation point where the company had all the subscribers it is going to ever get. All in all, Netflix's report card had multiple positives, with just the odd negative. The shares of Netflix also sky rocketed even beating their all-time high from June 8.
Netflix forecasts net income of 32 cents a share on revenue of $2.97 billion for the current third quarter.
Netflix has released its second-quarter 2017 financial results, which showed that its streaming membership grew from 99 million to 104 million. (Nasdaq: CMCSA, CMCSK) X1 video platform in Q4 of a year ago, and expanding distribution with Liberty Global Inc.
Domestic net additions were 1.1 million, with 750,000 additions forecast for Q3.
"Pricing is a big driver as sub gains take more time to achieve offsetting valuation gains, but price changes are immediate rev. and margin lift", Bank of America Merrill Lynch analyst Nat Schindler said in the note.
"There's no doubt that the most significant piece of Netflix's earnings is its growth in subscribers, exceeding expectations with 5.2 million added over the last quarter", Milligan says. Their subscribers overseas were 52.03 million while United States subscribers numbered 51.92 million.
A record number of subscribers switched on to Netflix in the past three months, sending the video-on-demand company's shares soaring. The company projects it will add 4.4 million new subscribers in the quarter. The company's third-quarter forecast for worldwide subscribers came in at 3.65 million, "well above our 2.85 million estimate and better than consensus of 3.20 million", he added. The company has repeatedly stated that it expected the majority of its members to soon be outside the United States.
13 Reasons Why was a surprise hit of the quarter for Netflix. The enterprise added 5.2 million new customers in the second quarter this year. So far, Netflix has renewed 93 per cent of its original series, much higher than the historical rate of traditional TV networks.
NFLX Stock Looks Set For An Extended Rally. (NYSE:BRO)'s stock on Monday traded at beginning with a price of $43.31 and when day-trade ended the stock finally moved down -0.67% to reach at $43.01. The short-interest ratio decreased to 4.1 and the short interest percentage is 0.06% as of May 31.
In addition to their original programming, NetFlix also can collect significantly more information from their viewers unlike HBO, which gives them an edge with tailoring shows to what their customers want. "We expect the company will continue to focus on global partnerships with distributors (similar to Altice) to supplement their direct-to-consumer offering".