"Netflix" sets the tone for streaming: https://
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Posted On: 07/12/2020 3:50:38 PM
"Netflix" sets the tone for streaming:
https://seekingalpha.com/news/3590429-sector-...cock-lands
Jul. 12, 2020 1:55 PM ET|About: Netflix, Inc. (NFLX)|By: Kim Khan, SA News Editor
Streaming video stocks are set for an important week as Netflix reports earnings and NBC’s new service Peacock debuts.
Netflix (NASDAQ:NFLX) will report Q2 results after the bell Thursday and investors are expecting impressive numbers. Shares soared 8% Friday to a new all-time high of $548.73.
The company is expected to post a profit of $1.83 per share, up from 60 cents per share in the year-ago period. It’s a perfect time for Netflix’s bottom line, with productions on hold due to lockdown measures, and there have been 27 upside estimate revisions in the last 90 days.
Revenue is seen rising to $6.08B from $4.92B a year ago. But subscriber numbers will likely be the major driver of shares.
Netflix has been pretty cautious on additions given a huge Q1, which saw 15.8M new customers. It’s forecasting 7.5M for Q2. For Q3 investors will be looking for more than last year’s 6.8M.
Goldman is confident and its call Friday was the catalyst for the rally. Goldman is eyeing up 12.5M Q2 additions and it slapped a Street-high target of $670 on shares. It noted that the idea that those who haven’t signed up for Netflix yet never will “fails to capture the reality of Netflix's earlier stage markets and a dramatically changing world that is pushing changes into every corner of consumer behavior".
Wall Street analysts are bullish on the stock, although the average price target is nearly $100 behind current levels. Seeking Alpha authors are more cautious, neutral overall.
https://seekingalpha.com/news/3590429-sector-...cock-lands
Jul. 12, 2020 1:55 PM ET|About: Netflix, Inc. (NFLX)|By: Kim Khan, SA News Editor
Streaming video stocks are set for an important week as Netflix reports earnings and NBC’s new service Peacock debuts.
Netflix (NASDAQ:NFLX) will report Q2 results after the bell Thursday and investors are expecting impressive numbers. Shares soared 8% Friday to a new all-time high of $548.73.
The company is expected to post a profit of $1.83 per share, up from 60 cents per share in the year-ago period. It’s a perfect time for Netflix’s bottom line, with productions on hold due to lockdown measures, and there have been 27 upside estimate revisions in the last 90 days.
Revenue is seen rising to $6.08B from $4.92B a year ago. But subscriber numbers will likely be the major driver of shares.
Netflix has been pretty cautious on additions given a huge Q1, which saw 15.8M new customers. It’s forecasting 7.5M for Q2. For Q3 investors will be looking for more than last year’s 6.8M.
Goldman is confident and its call Friday was the catalyst for the rally. Goldman is eyeing up 12.5M Q2 additions and it slapped a Street-high target of $670 on shares. It noted that the idea that those who haven’t signed up for Netflix yet never will “fails to capture the reality of Netflix's earlier stage markets and a dramatically changing world that is pushing changes into every corner of consumer behavior".
Wall Street analysts are bullish on the stock, although the average price target is nearly $100 behind current levels. Seeking Alpha authors are more cautious, neutral overall.
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