Netflix shares soar on record subscriber growth

The streaming company released a record 676 hours of original programming in the third quarter, according to Cowen & Co, the first time it has exceeded 500 hours in any quarter.

Netflix added almost seven million new customers in the three months to September, bringing its total to more than 137 million members worldwide.

Subscriber growth is paramount and in this category, Netflix didn't disappoint. Domestically, Netflix added 1.09 million subscribers, compared to an estimate of 673,800. Analysts were expecting 4.8 million - 600,000 in the United States and 4.2 million internationally, according to Nomura Instinet.

Netflix' Summer of Love, a programming campaign that lumped a bunch of teen-focused romantic comedy releases during the northern hemisphere's summer, hit the bull's eye, the company said in its third-quarter earnings report on Tuesday. Netflix said it expects subscribers to grow by another 9.4 million in the fourth quarter, up 13% compared to a year ago.

"The question at the end of Q2 was whether that miss was an aberration or signs of a longer-term slowdown in the business", said Forrester Research analyst Jim Nail.

Those obsessed with Netflix shares should keep in mind the old adage that cash is king. While most of that still funds shows licensed from other companies, original programs account for a growing share.

More news: Astronauts return to Russian Federation after failed space launch

That's because at its current voracious pace of spending on original content such as House of Cards, Netflix is running the risk of ballooning debt and surging interest payments that could surprisingly hammer the bottom line.

The analyst doesn't have an official price target for Netflix, but pegs the company's fair value at $377 a share. "Even the US number was better than I thought it would be. This quarter, we under-forecasted memberships", Netflix said in a letter to shareholders. "That's a really good number for a market that's this mature".

The company is close to purchasing a production facility in Albuquerque, New Mexico, and recently leased a second office tower in Hollywood. The number of people paying for cable or satellite has fallen in recent years, denting profit at the world's largest media companies and triggering a wave of mergers.

Is Netflix anxious about competition yet? Next year, Disney, which bought the film and TV assets of Twenty-First Century Fox, is set to launch its streaming service, as is WarnerMedia, the amalgam of AT&T and Time Warner.

"My competitors have Netflix turning cash flow positive in two years, that's just insane - it's not going to happen", Wedbush technology analyst Michael Pachter said on Yahoo Finance's "Midday Movers' show".

(Copyright © 2015. All Rights Reserved.)
 
Recommended

Cyclone Titli: Schools, colleges to remain closed on Oct 11 & 12
The students' union poll across the state scheduled for October 11 has been cancelled, Chief Secretary Aditya Prasad Padhi said. All eight deaths were reported from the Andhra Pradesh coast and no casualties were reported so far from neighbouring Orissa.

Tanzanian billionaire Mohammed Dewji kidnapped
According to Forbes , Dewji has amassed a fortune of $1.5 billion, making him the youngest billionaire on the African continent. Mohammed Dewji , 43, was abducted outside a swanky hotel gym where he was going for his routine morning workout.

Malicious Message Bug Is Crashing PlayStation 4, How To Protect Your Console
The bug, in some instances, has been used during matches to cause the opposing team to crash and be unable to complete a match. So if your messaging settings currently allow you to receive messages from strangers, you may want to change them for now.

Google Pixel USB-C earphones launched with real-time Assistant, translation support
When the event gets over you should be able to find the Google Pixel 3 , and Google Pixel 3 XL live on Google's Store Page. The Pixel 3 line uses Qualcomm's Snapdragon 845 processor, has 4GB of memory, and comes in 64GB or 128GB of storage.

Princess Eugenie and Jack Brooksbank's wedding reception photos
Both Meghan and Kate opted for British designers, which makes Eugenie's choice of dress all the more unusual. Hours after the ceremony at St George's Chapel on Friday several bags were put up for sale on website.

Trump says he has no plans to fire Rosenstein
The President visited Orlando after his second Supreme Court Nominee Judge Brett Kavanaugh was sworn in over the weekend. The International Association of Chiefs of Police is the world's largest professional association for police leaders.

Two dead in Ukrainian fighter jet crash, U.S. pilot 'involved'
European Command's State Partnership Program , and this exercise will include robust participation of California ANG units". USAFE also said that mishap is already under investigation.

Atletico Madrid attacker Griezmann: Ballon d'Or must go to Frenchman
Manchester United goalkeeper David de Gea appears to have missed out on a place on the 30-man shortlist for the 2018 Ballon d'Or . The winners of the prestigious men's and women's awards will be announced at a ceremony in Paris on December 3 in Paris.

Florida Air Force bases eye incoming Hurricane Michael
As forecast, Michael would be the first Category 3 or higher hurricane to hit the Panhandle since Hurricane Dennis in 2005. As of the 5 p.m. advisory, Michael is now a Category 1 hurricane with sustained winds of 80 miles per hour .

Palestinian woman dies after West Bank stone-throwing
They added that Hamas leader Ismail Haniya also attended the protests east of Gaza City and hailed the ongoing demonstrations. In the most serious incident, in the south of the Strip, the IDF said several Gazans planted a bomb by the fence.

Google to shut down Google
Google is pulling the plug on its flagship social network Google + after data from up to 500,000 users was left exposed by a bug. Alphabet Inc shares fell 1 per cent to $1,157.06, after earlier dropping to $1,135.40, the lowest intraday price since July 5.

Sears retail shop files for bankruptcy
After the bankruptcy announcement appliance maker Whirlpool said that it expects a "very limited impact" to its business. The stock price was 41 cents a share in pre-market trading Monday morning - up from Friday's closing price of 34 cents.

Israelis killed in West Bank shooting
Thousands of Israelis and Palestinians work side by side in the industrial zone, which includes some 160 factories. The Israeli air force attacked militants in the Gaza strip, which was launched flaming balls at Israel .

Axl Rose Destroys Kanye West's 'Joke' Meeting With Donald Trump
West said a lack of "male energy" in the U.S. and in the Hillary Clinton campaign caused him to support Trump for President . West's visit to the White House falls in line with Kushner's efforts at criminal justice reform .

English Premier League Report, Liverpool v Manchester City, 7 October
Mahrez missed a penalty which meant Liverpool , Man City and Chelsea are all level on points. But we have to make sure we manage it until the end of the season to keep it like this.


More News

News
More News