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Stock Alert: Netflix

Media-services provider Netflix Inc. (NFLX) is perhaps one of the major beneficiaries of the current shutdown necessitated by the novel coronavirus.

As of April 2020, Netflix, whose primary business is subscription-based streaming service, has over 182 million paid members worldwide.

Netflix has added 15.8 million paid members in the first quarter, almost double from the same period last year. This significant outperfomance was attributed to higher viewing by the people who are confined to homes. The streaming service expects to add another 7.5 million members in the second quarter. It has added nearly 2,000 customer service agents to keep the service unaffected while swelling demand.

However, the pandemic has almost stalled Netflix's original productions around the world.

"We expect viewing to decline and membership growth to decelerate as home confinement ends, which we hope is soon," Reed Hastings, CEO said in a letter to investors.

For the second quarter, the company expects EPS to be $1.81 on revenue of $6.048 billion. On average, 38 analysts polled by Thomson Reuters expect earnings of $1.79 per share on revenues of $6.07 billion.

On April 21, Netflix had reported its first-quarter results with revenue increase to $5.768 billion from $4.521 billion last year. Earnings of $1.57 per share, however, missed the consensus at $1.65 per share.

From mid-March, Netflix shares have been climbing with more than 40% growth. Thursday, the stock was up $5.28 or 1.25% before closing at $426.70. It has recorded a 52- week high of $449.52 last week.

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