![]() And it's all thanks to these three factors.Stocks: Real-time U.S. But like gold, Krauth sees silver rallying in 2016. Silver prices were another big performer during the first quarter, gaining more than 11%. ![]() This Other Metal Is Set for Big Gains This Year. The NFLX stock price is looking discounted now.įollow us on Twitter and like us on Facebook. That's nearly 35% higher than today's price. The average 12-month price target is $117.36. Of the 44 analysts who cover the stock, 21 rate NFLX "Buy" and three maintain an "Overweight." Fifteen have a "Hold" rating, two have an "Underweight," and three rate shares "Sell," according to Wall Street Journal data. That's why we recommend NFLX as a long-term investment. And if talks of an activist push to shake up the company's board materializes, things could get very interesting for the NFLX stock price. An earnings miss and new rivals are not likely to upset Netflix's commanding lead. Netflix comfortably remains the leader in the streaming-video space. "It's the Bezos model - build, build, build - then the profits will follow." "Right now, they are going through an growth period," Money Morning Director of Tech & Venture Capital Michael A. The company has made a total investment of $5 billion on these. Netflix has plans to add 10 feature films, 30 kids' shows, and 12 documentaries this year alone. In a research note, Mahaney called Amazon's Prime Video announcement a "significant negative development" for Netflix.īut Netflix is stepping up its game with new developments and video content that could attract new customers and keep existing ones coming back for more. RBC analyst Mark Mahaney believes Amazon is a daunting threat to Netflix's dominance. On April 18, Amazon made its Prime Video streaming service available as a standalone offering. Is Netflix a Buy in 2016?Ī major emerging competitor for Netflix is behemoth Inc. Here is another reason why the Netflix stock price has been falling this year and how we recommend playing NFLX moving forward. That would be a 275% increase from the $0.28 it is expected to earn this year.Īnd that's not the only concern that has weighed on Netflix shares in 2016. Netflix said it expects material global profits starting in 2017, and overall estimates show it earning $1.05 a share in 2017. That's why Netflix's international growth is so important. The feeling among some analysts is that most individuals in the United States who want Netflix already have it. NFLX already has more than 80 million subscribers, with about half of those in the United States. The chief concern for investors is that Netflix's growth is stalling. But that might not continue in the future. There had been a sizable uptick because of pent-up demand in some areas. Analysts had estimated it would add 3.45 million.ĬEO Reed Hastings explained international growth is uneven because of how the rollout is working in different markets. Netflix projects just 2 million new international subscribers in Q2. And that has been weighing on the NFLX stock price. That's according to data from StreetAccount.ĭespite the bullish EPS and membership numbers, the company's guidance figures were disappointing. Wall Street consensus was for Netflix to report 4.36 million new members internationally and 1.77 million domestically. Of those, 2.23 million came from the United States and 4.51 million came from international markets as the company expanded into 130 countries. Netflix added 6.74 million new memberships in Q1. Revenue came in at $1.96 billion, up from $1.57 billion a year earlier and just slightly shy of the $1.97 billion projected. That was up from $0.05 in the same quarter a year ago, and it was also better than the $0.03 EPS expected. The video-streaming giant posted Q1 2016 earnings per share (EPS) of $0.06. Netflix has been under pressure this month, even though it posted strong Q1 results on April 18. We have a full recommendation on how to play the falling NFLX stock price, but before we get to that, here's what has been weighing on Netflix stock in 2016. With this latest drop, the NFLX stock price in 2016 is down nearly 24%.īut panic selling is not the way to play Netflix Inc. The NFLX stock price has dropped 19% to $86.80 in the last month, causing panicked investors to sell their Netflix shares.
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