Netflix: No Thanks - We'll Have Level 3 Instead
Focus Equity • 61 Comments
Focus Equity • 61 Comments
Wed, Oct. 5, 11:32 AM
- Netflix (NFLX +3.2%) is at almost a six-month high as speculation of interest by Disney or Apple continues to make the rounds.
- The buzz this week was initiated by investment firm Baird and then grew a life of its own -- although a closer scan doesn't show much of substance in the note from analyst Will Power (judge for yourself below).
- On Netflix M&A, Power wrote, “whether Disney, Apple or someone else, Netflix could become a target.”
- Netflix is up over 8% for the week.
- Previously: M&A talk lifts Netflix (Oct. 3)
Wed, Oct. 5, 8:08 AM
- Netflix (NASDAQ:NFLX) will screen original movies at iPic Entertainment locations in L.A. and New York City under the terms of a new 10-picture deal.
- The agreement is the first time Netflix has partnered with a theater chain on a longer-term deal.
- IPic, which operates about 15 multiplexes, is one of the innovators of the luxury theater concept.
- Financial details of the revenue-sharing agreement weren't shared.
Mon, Oct. 3, 4:14 PM
- Today's strength in Netflix (NASDAQ:NFLX) is being attributed by some traders to a note from Baird that pointed to an increase in M&A talk about the company, including chatter about Disney making a move. Shares of Netflix rallied 4.14% to close at their highest level in four months.
- Netflix is due to report earnings on October 17 when the focus will return back to global subscriber growth and margins.
Mon, Oct. 3, 1:23 PM
- Netflix (NFLX +4.4%) churns higher after a WSJ interview with Chief Product Officer Neil Hunt gives some clarity on how the company is adapting to its major global push.
- An improved algorithm, mobile app tweaks, and more international payment options are three ways that Hunt says Netflix is ready on the operational side to grow at scale.
- Shares of NFLX are at their highest level in about four months.
- Source: Wall Street Journal.
Wed, Sep. 21, 9:49 AM
- M Science is out with a warning on Netflix (NFLX -3.2%), saying the company will miss Q3 U.S. subscriber growth estimates based on its assessment of churn trends amid price hikes.
- M Science relies on significant data mining efforts in making its investment insights.
- Today's dip in Netflix comes a day after the company presented at the Goldman Sachs Communacopia conference. The biggest reveal from management's talk was that it aims to have half of its content be original programming over the next few years.
- "We don’t necessarily have to have home runs… We can also live with singles, doubles and triples especially commensurate with their cost," noted CFO David Wells.
- Goldman Sachs Communcacopia Conference presentation webcast
Tue, Sep. 20, 8:57 AM
- China is proving to be a tough nut to crack for Netflix (NASDAQ:NFLX).
- CEO Reed Hastings provided a brief update to reporters yesterday in which he said the company has made no progress in landing government permissions.
- Most analysts anticipated a hard road for Netflix in bringing the service into China and haven't factored the market into global subscriber growth estimates.
- NFLX +0.50% premarket to $98.55.
Mon, Sep. 19, 3:20 PM
- Netflix (NFLX -1.2%) won three Emmy awards last night to improve on its tally from each of the last two years. Ben Mendelsohn from Bloodline won best supporting actor in a drama series, while writing awards for Master of None and Patton Oswalt: Talking for Clapping also went to Netflix.
- Despite the solid showing, the talk of the night on the streamer was for the "She Rules" advertising spot highlighting some of the stronger female characters on Netflix shows.
- She Rules commercial (YouTube)
Mon, Sep. 19, 3:06 AM
- Hollywood Reporter discusses the entertainment industry's fears of a Netflix (NASDAQ:NFLX) content monopoly.
- Netflix is spending $6B/year on creation, and was nominated for 54 Emmys.
- Incumbents (TWX, DIS) worry they won't be able to compete in bidding wars.
- On the flipside, some note that Netflix's huge spend on new content will continue to drive subscription price increases, which will take a toll.
- Read the full article on Hollywood Reporter. Come back here to discuss.
Fri, Sep. 16, 6:19 PM
- Twenty-First Century Fox (FOX -0.2%, FOXA +0.3%) has filed a rare tampering suit against Netflix (NFLX +2.2%), charging it with poaching two executives who were under contract.
- Fox says it warned Netflix that the executives -- Tara Flynn, VP of creative affairs at Fox 21, and Marcos Waltenberg, a promotion executive with 20th Century Fox Film -- were under contract and that they were tampering with the employees.
- The suit says Netflix ran a “brazen campaign to unlawfully target, recruit, and poach valuable Fox executives by illegally inducing them to break their employment contracts with Fox to work at Netflix.”
- In a statement, Netflix says “We intend to defend this lawsuit vigorously. We do not believe Fox’s use of fixed-term employment contracts in this manner are enforceable. We believe in employee mobility and will fight for the right to hire great colleagues no matter where they work.”
- Netflix has hired nearly two dozen former Fox executives, but Flynn and Waltenberg are the only ones of those who were under contract.
Fri, Sep. 16, 11:19 AM
- Netflix (NFLX +1.1%) says it ordered ten episodes of a new series based off Spike Lee movie She's Gotta Have It.
- The company says the new series will be a "contemporary update" of the 1986 indie film.
- In other content news, Netflix also released the trailer for upcoming comedy series Easy, which stars Orlando Bloom. Easy hits the streaming world on September 23. There's also been a continuing undercurrent of strong support for Stranger Things, which debuted in July. The buzz for the second season of the supernatural thriller is already picking up.
Wed, Sep. 14, 11:24 AM
- Liberty Global (LBTYA +0.7%) has set a deal with Netflix (NFLX +1.8%) to integrate the streaming giant's app into its cable systems across more than 30 countries.
- The multi-year deal builds on the smaller launch of Netflix on Liberty's Virgin Media system in the UK in 2013.
- Customers will be able to easily search and browse Netflix content without switching to a different device, and new customers to Netflix can sign up directly via the app on the TV.
- The latest agreement will kick off with the Netherlands, launching Netflix on Liberty's Horizon box, and rollouts will continue into and through 2017.
- For Netflix, the deal follows on a summer arrangement to get into Comcast's X1 video system.
Tue, Sep. 13, 8:18 AM
- Netflix (NASDAQ:NFLX) has been downgraded to Underperform from Neutral at Macquarie, which is optimistic long term but thinks the company may have some short-term difficulty on rising content costs and increasing streaming services competition.
- Analyst Tim Nollen believes Netflix will not be able to meet the consensus expectation for international subscribers, and estimated the figure at 73M by 2019. The stock's price target was maintained at $85.
- NFLX -1.5% premarket
Tue, Sep. 6, 8:19 AM
- Piper Jaffray keeps an Overweight rating on Netflix (NASDAQ:NFLX) on its view that share price fairly factors in domestic saturation and ungrandfathering concerns.
- The investments firm points to Netflix's long-term international growth potential as it backs a price target of $122 on the streamer.
- NFLX +0.33% premarket to $97.70.
Mon, Aug. 29, 11:42 AM
- The U.S. box office is up 5.5% to $7.9328B after the first eight months of the year, according to tallying from Box Office Mojo.
- Higher ticket prices account for some of the gain.
- Despite a solid summer in terms of movie theater attendance, studios may have left something on the table as they suffered from "sequelitis virus," according to an insider look from The Hollywood Reporter.
- SA contributor L&F Capital Management pointed out last week that Disney's box office dominance (Finding Dory, Captain America: Civil War, The Jungle Book) this year bodes well for Netflix (NFLX +0.7%) which has exclusive streaming rights for the movies geared at children.
- Related stocks: CKEC, AMC, CNK, RLD, IMAX, RDI, MCS, NCMI.
Thu, Aug. 25, 7:43 AM
- Shares of Netflix (NASDAQ:NFLX) are on watch after William Blair upgrades to an Outperform rating after having the streamer set at Market Perform.
- The investment firm assigns a lofty price target of $145 and makes the bull case pitch of a run to as high as $185.
- NFLX is up 0.89% premarket to $96.03.
Wed, Aug. 17, 8:27 AM
- Netflix (NASDAQ:NFLX) expands as an agreement with video decoder specialist Enseo.
- The boosted partnership gives Enseo the rights to distribute the Netflix app on select Enseo devices at hotels in any country where the Netflix service is available.
- "Through our expanded agreement, now more hotels in more countries will be able to provide guests access to their favorite Netflix TV shows and movies on the in-room television," says Netflix Director Business Development Paul Perryman.
- Source: Press Release