This year, Netflix went against popular belief and hit a new record of $133.70 per stock on Friday. The increase is 3.5% better than what Wall Street analysts had in mind. Their projections indicated a much lower value for the company’s fourth quarter of 2016. Netflix shares saw constant growth as of lately, which dispels the rumors of having a volatile nature.
The predictions for fourth financial quarter in 2016 for Netflix are impressively positive considering the analysts’ own interpretations. In the wake of report release which is due on January 18th, after the close of the market, the shares have increased their value by 2.7%. They managed to grow by $3.55 and attained a new record of $132.73. Moreover, last week, Bryan Kraft from Deutsche Bank upgraded the shares by placing them from Hold to Sell. However, TheFlyontheWall predicts that this consensus will appear invalid as of next week when the number of subscribers is expected to soar.
For the moment, the numbers for the fourth quarter show a list of domestic subscribers of 1.44 million whereas the international platform managed to gather 3.73 paying clients. However, the forecast for the company indicates that these figures will double more or less. In the future, Netflix projects to achieve an addition of 1.2 million of domestic subscribers and 3.4 million of international customers. On the other hand, Wall Street foresees for first quarter 1.54 more domestic subscriptions together with 2.8 million international ones.
Bryan Kraft is of the opinion that the value of the multinational entertainment company is overrated. However, he admits that its strongest point of interest in the stock market has always been the number of subscribers. As long as they continue to add up, the company will see a stark constant growth. Bryan expects the company to earn high popularity in key countries such as France, Spain, Germany, and Italy. This is why his expectations exceed the ones of the company, and predicts an addition of 4.35 million subscribers.
Other statistics are placing Netflix above other popular similar services. In U.S. alone, Netflix is the first choice for 54% Americans when it comes to television. On the other hand, YouTube and Amazon managed to convince only 50% and 29% respectively of their online services. Netflix will report its earnings next Wednesday.
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