Netflix Approaches To Hit 100 Million Subscribers

Posted April 20, 2017

More than a personal success for Netflix, being on the brink of a subscriber count of such a scale highlights the whiz-bang of video streaming services and, in particular, the monthly subscription model Netflix employs. The company will spend $6 billion in 2017 on content and another $1 billion on marketing.

Still, even in a crowded space, Netflix has put itself in a position to build on its early lead.

Having a price of $147.25, Netflix (NASDAQ:NFLX) traded 3.03% higher on the day. Finally, Jefferies Group LLC reiterated a "hold" rating and issued a $141.00 target price (up from $135.00) on shares of Netflix in a report on Wednesday. The bad news is: Netflix remains rangebound through a multimonth lens.

Considering that Netflix ended its first quarter with 98.5 million total subscribers, Jefferies analyst John Janedis said the fact that the company already expects to crack 100 million this weekend means it has already significantly chipped away at its second-quarter growth guidance.

However, the DVD business continues to be in trouble with revenues (4.6% of total revenue) declining 16.8% year over year to $120.4 million.

Netflix has expanded around the world over the last few years, betting that its US formula would pay off in other countries.

In the first quarter the streaming service passed $2.5 billion in revenues and added another 5 million members.

A number of hedge funds and other institutional investors have recently modified their holdings of the stock.

Revenue rose 35 per cent to $2.64 billion in the quarter. State Street Corp raised its position in shares of Netflix by 3.8% in the fourth quarter. Regal Investment Advisors LLC bought a new stake in shares of Netflix during the third quarter valued at $1,363,000. Vicus Capital acquired a new position in shares of Netflix during the first quarter worth about $208,000. Institutional investors and hedge funds own 80.42% of the company's stock.

By the end of this year, Piper Jaffray analyst Michael Olson says that he expects the majority of Netflix's subscribers to be overseas. Following the completion of the transaction, the director now owns 8,012 shares in the company, valued at $1,152,926.80. The Company operates through three segments: Domestic streaming, global streaming and Domestic DVD.

"We've definitely got YouTube Envy", Hastings said while pointing out that while YouTube streams more than 1 billion hours of video per day, Netflix's SVOD offering streams a little over 1 billion hours per week.