Feb
22
Written by:
Steve Patterson
2/22/2010 5:17 PM
Netflix Continues to Move Higher
The king of home DVD delivery and streaming video to almost every entertainment device available has rallied in recent weeks reaching a 52 week high just yesterday. Running from $49.13 a share to $66.65 a share yesterday, earnings and the stock’s price to earnings both look decent at this time.
The recent news that Warner Brother’s movies will not be available through Netflix or kiosk chain Redbox for 28 days after a DVD’s release has not affected the stock price in recent weeks. The two distributors will wait on making new releases available to improve the studio’s profits on sold movie DVDs. They also agreed to destroy the DVDs after they are no longer widely rented instead of selling them to the public.
Netflix beat earnings expectations for the fourth quarter by 25% roughly and has nice revenue and earnings growth. Revenue growth is near 25% for the coming quarters with earnings growth at 46% this quarter and at 26% next quarter. Analyst increased their expectations within the past 30 days for the quarter earnings from 45 cents a share to 54 cents a share, thus sparking the recent increase in share price.
The price to earnings (P/E) is at 33 with the stock price near $65 at the close today. This is slightly lower than the 46% earnings increase but higher than next quarters 25% expected increase. If analyst nudge their expectations higher again, the stock should move accordingly. Look for this increase as a chance to buy or look for a slight sell off for your chance to trade the stock long.
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7 comment(s) so far...
Re: Netflix (NFLX) Continues to Move Higher
I don't like that move from Warner Brothers. Also, I hate the rising prices of concessions at the movies.
By Registry Cleaners on
2/25/2010 6:44 PM
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Re: Netflix (NFLX) Continues to Move Higher
I'm not sure what concession prices have to do with Netflix stock unless you are going to stay home and rent through the mail and thus the stock will move higher.
By Steve on
2/25/2010 7:03 PM
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Re: Netflix (NFLX) Continues to Move Higher
Closing price yesterday was @ 69.98. I wished I had found this blog a little earlier as I could have made some money in this stock. Great post!
By Eugene on
3/14/2010 11:53 PM
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Internet Marketing
yes, it is absolutely correct that Netflix exhausted balance expectations for the fourth division by 25% almost and has nice acquirement and balance growth.
By Internet Marketing on
3/23/2010 6:26 AM
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Absolute Acai
Is the two distributors will wait on making new releases available to improve the studio’s profits on sold movie DVDs and they also agreed to destroy the DVDs after they are no longer widely rented instead of selling them to the public.
By Absolute Acai on
3/23/2010 6:58 AM
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Re: Netflix (NFLX) Continues to Move Higher
Closed at $73.74 yesterday. It would have been nice to have taken position on this stock. Wall Street analysts continue to lift price expectations to $85-$92 range. NFLX is about to launch a service that allows streaming of tv episodes and movies to Nintendo Wii console owners with a NFLX subscription.
By Calvin Thompson on
4/1/2010 3:29 AM
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Re: Netflix (NFLX) Continues to Move Higher
NFLX has really done well in the past couple of days. It's closing price yesterday was at $82.42. It would have been nice to have taken position on NFLX last week. This stock is definitely bullish at this point.
By Jennifer Smith on
4/9/2010 9:44 PM
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