Tag Archives: netflix stock

Netflix Now Available In Every Major Global Market Except China

Reed Hastings, co-founder and CEO of Netflix, delivers a keynote address at the 2016 CES trade show in Las Vegas

The streaming media company is going to face trouble from Time Warner, but it managed to be in 130 countries.

According to reports by Bloomberg, Time Warner’s chief financial officer was wondering over the idea of making complete seasons of shows available for Pay-TV customers on demand. This idea of online streaming services came through when people started to ‘cut the cords’ and moved to on demand subscriptions – all this done to take on Netflix, Inc.

Almost about a year ago, the chief executive officer Reed Hastings had announced his plans on a global expansion. In a thirst to be in almost every country in the world, the company set a timetable for making the service available in over 200 countries by the end of 2016. At the time, it seemed too good to be true but just recently at the Consumer Electronics Show in Las Vegas, the streaming media giant announced that it has officially gone live in over 130 countries; so it is only 70 countries behind from its target.

After the announcement, Netflix stock rose by 9% on Wednesday. Now the service is almost available in all the significant market with one exception, China. In a day’s time (figuratively), the company tripled the number of countries. It is now available in most of the biggest market in the world with broadband subscribers.

Past week, it has been launched in Russia and South Korea, which made the company’s market too big from what it was a week prior to the announcement. With these latest launches, there is a little difference as initially it always had partnerships with a number of local businesses along with the availability of various languages but this time round it will only have the following languages: Korean, Chinese and Arabic.

Additionally, the video streaming media giant has not spent a lot of money in making original content for the specific countries as well. Due to this, the distribution of original movies and shows will be quite limited in these markets. One of the biggest costs it incurs while entering a new market is marketing the service. During the current year, it is planning to spend relatively aggressive in marketing so it is quite evident that the service is bound to see international losses in 2016.

Average international contribution loss was of $75 million each quarter during the first 3 quarters of 2015 and the company predicted that for the 4th quarter, it is expected to see an increase in the international contribution to as much as $117 million. Throughout the year, the losses are highly likely to cross the $100 million mark. Subsequently, with the marketing cost, it will have to incur another cost of improving its service in the latest markets.


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Posted by on January 12, 2016 in Finance News, NetFlix


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Netflix Inc. Stock Dropped Despite $125 TP ByCantor Fitzgerald

Netflix Inc. Stock Dropped Despite $125 TP ByCantor Fitzgerald

Netflix stock trades in the red today despite Buy rating and $125 target price from Cantor Fitzgerald

Yesterday, Cantor Fitzgerald has published a report on Netflix Inc. stock, reiterating its Buy rating and bullish price objective of $125. The streaming giant’s stock dropped in spite of the recurrence of trust.

Last night, the 67th Emmy Awards ended with Netflix getting Emmy awards, whereas it gets 7 precious years, the analysts said that this is a great performance for a streaming service that is still in its early stages. The analysts also said that Amazon and Netflix altogether was nominated in 46 awards, specifying their strength in the streaming service sector.

The analysts also added that there are several positive points, which points out the company prospects. These include the robust viewpoints of latest original, Narcos, the continuing expansion in Asia, and the increase in price in Europe.

The latest launched series, which was made available last month, got robust ratings on both IMDB and Metacritics, rated 9.1 and 9.2 respectively. The analysts believe that this is the good sign for the users growth as in the past, an optimistic correlation between originals and increase in subscribers has prevailed.

Netflix Inc. has declared plans to launch its services in over 200 countries by the end of next year. The introduction in Japan took place during the start of the year, whereas that in Taiwan, Hong Kong, South Korea and Singapore is most likely take place in early 2016. The expert thinks that these launches of services will help the company to sustain its subscription growth for the coming two to three years.

The service subscription fee was increase by 1 euro in Germany, Netherlands and France to 8.99 euro. According to analysts this increase specifies the company’s strength and robust adoption in the region.

The price target of $125 is calculated on the basis of 7 year discounted model of cash flow, assuming weighted average cost of capital (WACC) of 10% and 4% of terminal growth. Netflix stock now trades at multiples of 78.7x and 6.5x for projected EBITDA and revenues of fiscal year 2015, and multiples of 79.3x and 5x for FY16, respectively.

The threats to the price target include slowing in subscription growth, competitive pressure, global losses, faster deterioration of DVD division, and failure in recommencing content contracts with suitable terms.

The Street is bullish regarding the stock, with 23 analysts giving it a Buy, 16 suggesting a Hold and 6 giving it a Sell rating.

Netflix stock news shows that the stock was down 1.82% to 98.7 at market close yesterday.

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Posted by on September 24, 2015 in Finance News, NetFlix


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