Will Investors Be Content With Netflix Q4 Content?
Spreadex | Jan 11, 2019 10:54
After rising from $194.85 to an all-time high of $423.15 in late June, the streaming juggernaut was in for a tough end to 2018. A very poorly received second quarter update in mid-July left the stock in a bad way, while the gains made following its Q3 statement in October didn’t last long.
By the year’s close it was at $256.15, a 37% drop from its summer peak (though still, interestingly, a 37% increase on its 2018 open). It has, however, rallied hard since the start of 2019, with Netflix (NASDAQ:NFLX) now at a current trading price of $330.73.
As mentioned, October’s third quarter update did initially spark quite the rally, the stock shooting up 16% in a single session. While revenue was merely in line with expectations – though a 34% surge to just shy of $4 billion is certainly nothing to sniff at – it knocked its other metrics out of the park. Diluted earnings were 89 cents per share against the 68 cents forecast, with subscriber additions at a very healthy 6.96 million, substantially higher than the 5.13 million estimated.
And Netflix is expecting big things subscriber-wise from Q4, with the company stating back in October it is looking for 9.4 million net additions across the quarter. It is slightly less ambitious elsewhere, however, with revenue set to rise 27.8% to nearly $4.2 billion, and earnings per share at just 23 cents.
Given the sharpness of its rebound since the year began, the company really needs to pair meeting those estimates with a decent set of forecasts for its first quarter.
Netflix Inc has a consensus rating of ‘Buy’ alongside an average target price of $367.41.
Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
Get The App
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved.
Original post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.