logo
Plus   Neg
Share
Email

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.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Shares of Volkswagen Group were gaining around 3 percent in German trading after the automotive giant Thursday reported market recovery in the third quarter with improved deliveries in the month of September. For the first nine months of fiscal 2020, the company, meanwhile reported sharply lower earnings with weak revenues and sales volume. Comcast Corp. on Thursday reported a 37 percent decline in profit for the third quarter from last year, hurt primarily by revenue decline at NBCUniversal. Both adjusted earnings per share and quarterly revenues topped analysts' expectations. The company also declared a quarterly dividend. In the pre-market trade, CMCSA is trading at $42.83, up $0.85 or 2.02 percent. Regeneron announced positive results from its late stage COVID-19 outpatient trial, indicating that its antibody cocktail therapy significantly reduced virus levels and need for further medical attention. The trial results showed that investigational antibody cocktail, REGN-COV2, met the primary and key secondary endpoints.
RELATED NEWS
Follow RTT