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More on Netflix (NFLX): The company smashes Q1 estimates as it had no trouble adding to paid...

More on Netflix (NFLX): The company smashes Q1 estimates as it had no trouble adding to paid domestic and global subscriber totals. Netflix added 2.03M net domestic streaming subscribers in FQ1, compared to 2.05M last quarter and 1.7M a year ago. International subscribers came in at 1.02M, compared to 1.81M last quarter and 1.12M a year ago. DVD memberships dropped slightly to about 8M. The company issues FQ2 guidance of revenue of $665M-$673M and sees a jump in total members to 29.4M to 30.05M. NFLX +19.3% AH. (company letter .pdf)
Comments (19)
  • Dividend Pros
    , contributor
    Comments (154) | Send Message
     
    Told you not to hold your breath for a pullback: http://seekingalpha.co...

     

    Hastings gave a pretty clear hint just before earnings.
    22 Apr 2013, 04:17 PM Reply Like
  • Dividend Pros
    , contributor
    Comments (154) | Send Message
     
    Here's my earnings review: http://seekingalpha.co...
    23 Apr 2013, 09:25 AM Reply Like
  • RSI Raistlin
    , contributor
    Comments (400) | Send Message
     
    There will be great trading on this one tomorrow...I can't wait
    22 Apr 2013, 04:34 PM Reply Like
  • Gary J
    , contributor
    Comments (4799) | Send Message
     
    Even better for buy and holders with no trading costs.
    22 Apr 2013, 04:42 PM Reply Like
  • RSI Raistlin
    , contributor
    Comments (400) | Send Message
     
    true Gary but this one is a scary see-saw stock........rather trade it personally and not worry about any afterhours or weekend nonsense
    22 Apr 2013, 05:46 PM Reply Like
  • Gary J
    , contributor
    Comments (4799) | Send Message
     
    Ok we will compare results in a few years. Meanwhile you will be the one staring at ticks on the screen all day and I will be the one staring at 4 foot putts. lol
    22 Apr 2013, 07:21 PM Reply Like
  • RSI Raistlin
    , contributor
    Comments (400) | Send Message
     
    lol I'm awful at golf once played with a Boston Bruin friend of mine and cracked his wedge right in half and I didnt even hit the ground, we never figured out how .......very embarrassing. Side note the bottom half of the club went farther than the ball. Believe it or not there's nothing I love other than my family more than staring at ticks, its the gambling rush but with some slight respectability lol.......I guess to each his own right?
    22 Apr 2013, 07:55 PM Reply Like
  • Gary J
    , contributor
    Comments (4799) | Send Message
     
    I suppose but don't forget the smell of roses. lol
    23 Apr 2013, 06:51 AM Reply Like
  • HPBunker
    , contributor
    Comments (219) | Send Message
     
    NFLX deserves a forward (say, year 2100) P/E of at least 1,000. It's a screaming buy at anything less than $100k per share.
    22 Apr 2013, 04:43 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    Momentum stock nirvana. This was not a name to short. The trend remains toward on demand streaming content. Given that cable and satellite providers are continually raising subscriber premiums, when will NFLX follow?
    22 Apr 2013, 04:51 PM Reply Like
  • shorts weather
    , contributor
    Comments (2) | Send Message
     
    113M of 167M profit still coming from the soon to be extinct DVD business. Will be interesting to see how NFLX can squeeze more profit out of the streaming business with all the new competitors entering the space. Can only see content cost increasing along with increased competition.
    22 Apr 2013, 04:53 PM Reply Like
  • Gary J
    , contributor
    Comments (4799) | Send Message
     
    "soon to be extinct DVD business"

     

    Not so fast there bucko. There is no reason they cannot co-exist. The bigger your display (mine is 100") the better Blu-ray looks over streamed.
    22 Apr 2013, 05:38 PM Reply Like
  • shorts weather
    , contributor
    Comments (2) | Send Message
     
    They can co-exist for now, but look at the trend. Streaming subscriptions rising with DVD subscriptions declining.

     

    You can stream from a blue-ray player as well, is the quality not the same? Just have a hard time seeing discs being around that much longer, and that is where NFLX currently generates a large chunk of its profit.
    22 Apr 2013, 10:28 PM Reply Like
  • Gary J
    , contributor
    Comments (4799) | Send Message
     
    No the quality is not the same - that is the point. The streaming signal is highly compressed compared to a Blu-ray signal and it shows up on a home theater screen. There is no reason for them to give up that revenue unless they just cede it to someone else. If you are going to sell regular gas you might as well sell premium too.
    23 Apr 2013, 06:56 AM Reply Like
  • Jason Burack
    , contributor
    Comments (1765) | Send Message
     
    What about revenues, profit margin expansion and increase in net income or free cash flow?
    22 Apr 2013, 05:19 PM Reply Like
  • Quoth the Raven
    , contributor
    Comments (2083) | Send Message
     
    Changed my story on NFLX after being bearish last quarter. Next stop : $300. And it won't be long.
    22 Apr 2013, 07:02 PM Reply Like
  • mmazz
    , contributor
    Comments (4) | Send Message
     
    Jason poses a good question. NFLX is carried away on valuation and I just don't see why someone would want to chase it. Revenues are steady, profit margins, and free cash flow are in decline so you're paying a huge premium for declining earnings quality. There's more to this earnings report than the headline beat. The stock will begin to fall soon.
    22 Apr 2013, 09:15 PM Reply Like
  • RSI Raistlin
    , contributor
    Comments (400) | Send Message
     
    momentum traders for one.....its not really trading to fundamentals in my view, and momo trading can go on for a while
    22 Apr 2013, 09:32 PM Reply Like
  • zero1945
    , contributor
    Comments (205) | Send Message
     
    Conference call mentions off-balance sheet debt. Not liking the sound of this.
    22 Apr 2013, 09:38 PM Reply Like
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