Netflix Inc Shares Rage After $5.2 Million Subscribers Added
Ticker.tv News | Jul 18, 2017 09:36AM ET
Netflix, Inc. (NASDAQ: NASDAQ:NFLX)
Netflix, Inc. (NFLX), an Internet television network yesterday reported their second quarter 2017 financial results. They reported a record of adding 5.2 million subscribers during the second quarter.
The company reported second quarter net income of $65.60 million with second quarter earnings of $0.15 per share which fell short of analyst expectations of $0.16 per share.
Netflix reported second quarter revenues of $2.79 billion which beat analyst expectations of $2.76 billion.
“Our quarterly guidance is our internal forecast at the time we report and we strive for accuracy. In Q2, we underestimated the popularity of our strong slate of content which led to higher-than-expected acquisition across all major territories. As a result, global net adds totaled a Q2-record 5.2 million (vs. forecast of 3.2m) and increased 5% sequentially, bucking historical seasonal patterns. For the first six months of 2017, net adds are up 21% year-on-year to 10.2m. Our Q3 guidance assumes much of this momentum will continue but we are cognizant of the lessons of prior quarters when we over-forecasted and there was lumpiness in net adds, likely due to demand being pulled forward (into Q2 in this case).” Netflix
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NFLX opened trading yesterday at $162.91 which was up from the previous day’s trading close of $161.12. NFLX closed trading yesterday at $161.70 and spiked up after market to $178.88, equivalent to a 11% increase from the closing price. Taking a look at the daily chart we can see that with the gap up we are now in unchartered territory as NFLX is now trading at all time highs.
Taking a closer look at the daily chart we can see that before the spike up NFLX had already been in an overall upward float of 424.09 million shares and traded 2.55 times the normal daily trading volume on Monday.
For trading purposes, I would like to see NFLX open trading on Tuesday above $173.50 and if it does I would be looking to take a long position at the bell. My stop loss would be $1.50 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
Netflix, Inc., an Internet television network, engages in the Internet delivery of television (TV) shows and movies on various Internet-connected screens. It operates in three segments: Domestic Streaming, International Streaming, and Domestic DVD.
The company offers TV shows and movies, including original series, documentaries, and feature films. It offers members with the ability to receive streaming content through a host of Internet-connected screens, including TVs, digital video players, television set-top boxes, and mobile devices.
The company also provides DVDs-by-mail membership services. As of April 28, 2017, it had approximately 100 million members in 190 countries. Netflix, Inc. was founded in 1997 and is headquartered in Los Gatos, California.
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