Netflix, Inc. (NFLX) - NASDAQ
  • Jul. 15, 2015, 4:18 PM
    • Netflix (NASDAQ:NFLX) reports it added 900K net subscribers in the U.S. to smash its guidance for 600K adds.
    • International net subs added were 2.37M vs. 1.90M guided.
    • Total Netflix memberships now are at 65.55M.
    • Guidance for Q3 of 2015 is for 1.15M U.S. adds and 2.40M global.
    • Total streaming contribution margin was 16.7% vs. 15.4% expected and 17.7% in Q1. The metric is closely watched by analysts with significant upside seen over time. HBO has reported streaming contribution rate of ~39% and Netflix sees a U.S. contribution margin rate of 40% by 2020.
    • Free cash flow of -$229M is reported vs. -$59M expected and -$163M last quarter.
    • Netflix expects to increase the percentage of original content spending.
    • The company highlighted its move into original films. The first hits theaters in October.
    • Previously: Netflix beats by $0.02, misses on revenue (Jul. 15 2015)
    • Q2 shareholder letter (.pdf)
    • NFLX +9.72% after hours to $107.61.
    | Jul. 15, 2015, 4:18 PM | 119 Comments
  • Jul. 15, 2015, 1:07 PM
    • Charter Communications (CHTR +2%) and Time Warner Cable (TWC +1.3%) are on the move this afternoon as Charter draws an important ally in its TWC takeover: Netflix (NFLX -2.2%) is endorsing the deal, telling the FCC of "substantial public interest benefit."
    • Charter is offering free interconnection with content/longhaul providers until December 2018, and that's enough to win Netflix's support for the TWC deal -- if Charter keeps that promise.
    • "Charter's new peering policy is a welcome and significant departure from the efforts of some ISPs to collect access tolls on the Internet," Netflix's letter reads.
    • Netflix's opposition to Comcast's deal for TWC is believed to have held a lot of weight in the breakup of that takeover.
    | Jul. 15, 2015, 1:07 PM | 2 Comments
  • Jul. 13, 2015, 4:32 PM
    • "When the company announced a confusing merger with Alcatel-Lucent ... we used the opportunity to exit with a healthy gain," writes David Einhorn in his Q2 letter, explaining Greenlight Capital's unloading of its Nokia (NYSE:NOK) position.
    • Regarding his decision to exit EMC, Einhorn cites "the reduced odds of any favorable change to the corporate structure and increasing concerns about a lack of growth in the storage business." EMC is 4 months removed from formally stating it doesn't plan to spin off its 80% VMware stake.
    • Regarding Marvell (NASDAQ:MRVL), a position held for years, Einhorn cites weak PC demand as a reason for exiting following a 15% compounded annual return. His disclosure comes on a day Marvell rose 5.4% thanks to a report of buyout interest from a Chinese investment firm.
    • Echoing the bullish arguments he has made for rival Lam Research (NASDAQ:LRCX), Einhorn says he took a small position in Applied Materials (NASDAQ:AMAT) out of a belief AMAT's core etch/deposition equipment markets will outgrow the broader chip equipment industry "due to the increased use of 'multi-patterning' to produce chips at geometries below [20nm]." He predicts results will improve as management turns its attention from the abandoned Tokyo Electron merger towards "growth and cost savings opportunities." With Einhorn's help, AMAT rose 2.9% today.
    • "It's a cyclical business and, regrettably, we missed the turn of the cycle," says Einhorn about Micron (NASDAQ:MU), Greenlight's biggest Q2 loser. However, he still thinks the DRAM industry is acting more rationally following consolidation, notes shares trade at "less than 12x annualized trough earnings and less than 5x prior peak earnings," and predicts future cycles will have higher peaks and troughs.
    • Over the long run, Einhorn expects Micron ($19.1B market cap) to be worth more than Netflix (NFLX - $42.9B market cap), whose recent surge he considers quite unjustified. "In today's market, the best performing stocks are companies with exciting stories where accountability is in the distant future." He adds Season 3 of House of Cards "appeared to be scripted to compete with Ambien,"
    • Worth noting: While Einhorn has a good track record going long, his short picks have been more hit-and-miss.
    | Jul. 13, 2015, 4:32 PM | 37 Comments
  • Jul. 9, 2015, 5:29 PM
    • There's been little news coming out of secretive Sun Valley -- where media moguls gather at the Allen & Co. conference for "summer camp" and sometimes rearrange billions of dollars with game-changing M&A -- but John Malone today dropped more hints about content consolidation.
    • While media distribution companies have more obvious benefits from consolidation, Malone -- who has hands in Liberty Global (NASDAQ:LBTYA), Liberty Media (NASDAQ:LMCA), Liberty Interactive (NASDAQ:QVCA), Charter (NASDAQ:CHTR) and Starz (NASDAQ:STRZA) -- said economies can apply to content too.
    • "It's all about global scale," he told CNBC. "If you want to be a meaningful player in most of any of these media communication businesses, you have to think about it."
    • And while speculation boils about a tie-up between Malone's Starz (STRZA) and Lions Gate (NYSE:LGF) after the two swapped stock, Malone focused on the educational side: "I'm an engineer; what the hell do I know about content? Trying to understand where these ideas come from, how they get created and produced. The development of stories is really going to be important in this random-access world that Reed Hastings (NASDAQ:NFLX) is driving us into."
    • Malone said Netflix changed the game, and that his companies "missed the boat a little bit" on over-the-top offerings.
    • Today: NFLX +2.4%; LGF +0.9%; QVCA +0.3%; CHTR +0.2%.
    | Jul. 9, 2015, 5:29 PM | 8 Comments
  • Jun. 25, 2015, 7:57 AM
    • Netflix (NASDAQ:NFLX) plans to enter India in 2016, sources tell The Times of India.
    • The development reportedly has local direct-to-home operators scrambling.
    • The on-demand market in India is considered very large, although early entrants have been held back by "scratchy" Internet connectivity.
    | Jun. 25, 2015, 7:57 AM | 15 Comments
  • Jun. 23, 2015, 4:37 PM
    • Netflix (NASDAQ:NFLX) announces a seven-for-one stock split.
    • The development was widely anticipated after the company increased its share issuance allowance last month.
    • Shares of the streamer will begin trading at their new level on July 15.
    • NFLX +1.58% after hours
    | Jun. 23, 2015, 4:37 PM | 49 Comments
  • Jun. 22, 2015, 8:18 AM
    • BTIG Research increases the price target of Netflix (NASDAQ:NFLX) to $950 from $600 on its view the "breakdown" in the traditional media ecosystem will directly benefit the company.
    • While most upgrades on Netflix from Wall Street firms have focused on the accelerated pace of Netflix's international expansion, BTIG thinks there is also upside in the U.S. to grow substantially past 50M subscribers.
    • BTIG forecasts 140M global subscribers by 2020.
    • On the topic of profits, BTIG thinks Netflix can expand average revenue per user at scale.
    • Previously: Sky-high PT on Netflix from Oppy (Jun. 19 2015)
    • NFLX +1.45% premarket to $666.90 - a level still 42% short of the BTIG price target.
    | Jun. 22, 2015, 8:18 AM | 18 Comments
  • Jun. 10, 2015, 1:45 PM
    • Trading volume on Netflix (NFLX +4.9%) is already 3X normal activity as investors pushed the stock to fresh all-time highs before it settled back a bit.
    • Despite wide anticipation, a move by the company to increase the amount of stock it can issue has put a fresh charge into shares.
    • A new deal with Marriott International and a price target hike by UBS to $722 are also adding to the positive vibe on the streaming juggernaut.
    • NFLX hit an intra-day high of $692.79.
    • Previously: Netflix sets the table for stock split (June 9)
    | Jun. 10, 2015, 1:45 PM | 51 Comments
  • Jun. 3, 2015, 9:29 AM
    • Netflix (NASDAQ:NFLX) announces four new original series aimed at kids.
    • The animated series will debut this year and in 2016.
    • CEO Reed Hastings also reacted to a firestorm among users over advertising on the site by clarifying that only trailers for other Netflix shows will be shown.
    • "No advertising coming onto Netflix. Period," stated a Facebook post from the exec.
    • NFLX +0.33% premarket to $625.97.
    | Jun. 3, 2015, 9:29 AM | 6 Comments
  • May 19, 2015, 9:27 AM
    • Shares of Netflix (NASDAQ:NFLX) are trading at all-time highs in premarket trading with the price target bar from Wall Street getting boosted to a new level.
    • Boutique investment firm Pivotal Research set its PT on the streamer at $850 after factoring in favorable China and South Korea penetration rates.
    • A faster pace of international growth led Pivotal to move higher the EBITDA multiple it uses to extrapolate a price target.
    • Other firms have also been adjusting projections on Netflix based on the new markets it's knocking off its list.
    • Previously: Netflix +2% after report of China deal (May. 15 2015)
    • NFLX +0.64% premarket to $621.80.
    | May 19, 2015, 9:27 AM | 16 Comments
  • May 5, 2015, 11:04 AM
    • Netflix (NASDAQ:NFLX) is pressing the FCC to reject the $48B merger of AT&T (NYSE:T) and DirecTV (NASDAQ:DTV), according to regulatory filings revealed today, on complaints about market power -- as the merger could "lead to its becoming the largest (Internet service provider) in the country as well" as becoming the biggest MVPD.
    • The remarks came as Netflix officials met with more than 20 FCC staff last week.
    • "Such market power creates new incentives and abilities to harm entities that AT&T perceives as competitive threats," Netflix reps said, "and will exacerbate the anticompetitive behavior in which AT&T has already engaged."
    • Netflix shares are up 3.8% today in the wake of BofA/Merrill Lynch's heavy upgrade; AT&T is down 1.2% and DirecTV is down 0.5%.
    | May 5, 2015, 11:04 AM | 31 Comments
  • May 5, 2015, 7:36 AM
    • Shares of Netflix (NASDAQ:NFLX) are higher in early action after Bank of America Merrill Lynch moves its rating to Buy straight from Underperform.
    • The investment firm says a "AAA" content portfolio will extend the U.S. saturation point and support a rosy forecast for international subscriber growth.
    • BAML sees 50M international subs by 2017 and 120M subs in the long-term.
    • A price target of $722 (27% upside) is set on the streaming juggernaut.
    • NFLX +2.43% to $568.40.
    | May 5, 2015, 7:36 AM | 15 Comments
  • Apr. 16, 2015, 12:45 PM
    | Apr. 16, 2015, 12:45 PM | 4 Comments
  • Apr. 16, 2015, 9:12 AM
    | Apr. 16, 2015, 9:12 AM | 2 Comments
  • Apr. 16, 2015, 7:29 AM
    | Apr. 16, 2015, 7:29 AM | 12 Comments
  • Apr. 15, 2015, 7:16 PM
    • On a Q1 earnings interview, Netflix (NASDAQ:NFLX) execs pointed to international growth to justify the market's (priced-in) expectations of 60M-90M subscribers.
    • "For most global Internet firms, the U.S. is 20%-35% of usage and revenue; we're not anywhere close to that yet but we're continuing to invest in international," CEO Reed Hastings said. U.S. membership of 41.4M makes up two-thirds of Netflix's current total subscribers.
    • On margin outperformance (U.S. contribution margin was 31.7% vs. a forecast 30.1%) : Aside from shifting marketing dollars to international, part of it is how Netflix allocates content costs by geography. "By going faster internationally ... it's gonna provide some relief to those global originals and global projects we do have that are allocated to the U.S.," CFO David Wells says. "Our target remains the same: 40% in 2020."
    • On leverage of original content: "What we're seeing is that dollars invested in our original programming are more efficient in that for every dollar spent, we get more bang for the buck in terms of hours viewed. and hours viewed leads to higher retention, more word of mouth, and more brand halo," says Chief Content Officer Ted Sarandos.
    • On the question of sports, Netflix still isn't interested: "I don't know that on-demand sports is markedly better than live sports," explains Sarandos. "The Internet TV proposition is more powerful for consumers" even if someone else, perhaps a combination of leagues, picks up the live sports part of Internet distribution, Hastings says.
    • NFLX now +11.5% after hours.
    • Previously: Netflix jumps 12.7% on strong subscription growth (Apr. 15 2015)
    • Previously: Netflix beats by $0.08, revenue in-line (Apr. 15 2015)
    | Apr. 15, 2015, 7:16 PM | 6 Comments
Company Description
Netflix, Inc. operates as an Internet subscription service company, which provides subscription service streaming movies and TV episodes over the Internet and sending DVDs by mail. The company operates its business through three operating segments: Domestic streaming, International streaming and... More
Sector: Services
Industry: Music & Video Stores
Country: United States