It’s been a couple days since I posted my last article, but I’ve been really busy. Still working on the second article in the [Investing 101] series (honestly should’ve been the first one I put out, but oh well).
Thanks for all the support! I’ve gotten a ton of emails from you guys (85 of them according to my gmail search bar), and I honestly sent essay responses back to about 4 of you, and then didn’t respond to anyone else because I have no time. It’s been incredible getting all this support from everyone. When I say everyone, I mean just about every age range from 14 year olds to 44 year olds contacted me. I almost got roped into a, “We love your website so much we’ll give you free domain hosting (for a couple dollars a month of course),” scam which sort of killed the vibe, and I never got back to responding to the emails.
Send them again and I’ll try to get back to you this time.
The 30 for 30 challenge (30 articles in 30 days) just isn’t realistic anymore as Fridays and the weekends are the only time I have any breathing room, and even then I’m putting in like 20+ hours on doing Math just to stay afloat in the class.
I’ll try to get to 20 articles by May 6 (30 days after I started this). Right now I’ve got 7 including this.
Anyways, enough about me, I decided to just drop everything and write an article because it’s been a bit too long. I have articles I start and stop, never to finish, at least two times a day, but Netflix is easy to write about so I’m going to just vomit it out.
Netflix didn’t just beat earnings, it smashed it. It grew in every sector the stock is tracked in, and although growth in America did slow down a little, it didn’t decline. They’ve also reached something of a saturation point in America where fewer and fewer people are going to be able to subscribe to Netflix because they already are subscribed.
International growth was incredible as well, and if Netflix had done even a little better in China, the Netflix bears would have had NOTHING to say against it, even with Amazon offering Amazon Prime (2 day shipping, music streaming, and live-stream shows, along with a host of other amenities) at $8.99 per month if you didn’t want to pay $99 per year for Amazon Prime.
I must say though, Netflix is the only one with Orange is the New Black, How to Make a Murderer, House of Cards, Daredevil, and SO MUCH MORE. Their catalog of original shows itself is VERY impressive and beats out Amazon.
Additionally, here are some highlights from Netflix’s earnings report:
Gained more than 600,000 new subscribers (81.5 million up from the expected 80.96 million)
Added 4.51 million new international customers.
Earnings were also up to $1.8 billion up from $1.67 billion the previous quarter.
They’re down based on future expectations of only 2 million new international subscribers because of slowed American growth.
Netflix is down to $94 from $111 on Friday at the close. You have to keep in mind that Amazon timed their announcement perfectly and it was in order to interfere with Netflix’s Earnings Report.
As I said before, Netflix has reached a point close to the carrying capacity of what they’re going to be able to penetrate in the American market. They should be looking for international growth. They’re in 190 countries, Amazon isn’t in even half that many.
Netflix is eyeing China to be a growth catalyst for it. Rumors of Disney (DIS) being in the late stages of a merger with NFLX is also a very large potential announcement. However, if you have to be dependent on a merger announcement to make a profitable stock, it’s not a good stock.
Netflix is valued at close to 50x more than its book value, but if they continue dominating the market, they should have no problem bouncing back. I myself snagged a lot of shares of Netflix today and am waiting for the inevitable bounce back.
Yes, Netflix is going to bounce back to eel over $100, whether that’s in the high to low 70s-80s, or $92, it’s bouncing back, and I intend to profit off of this.
Let’s see what happens now. 🙂