FastSwings.com

   Stocks, Stock Swings, Options, and Option Trades

   Disclaimer: Consult a Financial Advisor prior to taking the advice offered. By reading this blog site you agree to not hold any authors or FastSwings.com responsible for market loses that you may incur.

 Subscribe in a reader

Subscribe to FastSwings by Email

Netflix (NFLX) Continues to Move Higher

Feb 22 2010

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.

Try Turbo Tax 2009 or Tax Act 2009 Free Today!

© 2010 FastSwings.com

Our FaceBook Page

Market Summary