NFLX
Netflix shares dive as revenue barely beats expectations
Article Summary
HOLD- Netflix Inc. (NASDAQ: NFLX) shares plunged more than 8 percent after reporting quarterly revenue of $12.25 billion, slightly beating expectations, and announcing that co-founder Reed Hastings will step down as chairman when his term as chairman of the board of directors ends in June.
- The share price plunge came despite Netflix reporting profit of $5.28 billion boosted by a fee received for the termination of a deal to buy Warner Bros.
- Discovery, with Netflix declining to sweeten its takeover offer of Warner Bros., effectively ceding the media giant to rival bid from Paramount Skydance after deciding the deal was no longer financially attractive.
- Netflix logged a termination fee of $2.8 billion related to the nixed deal, with analysts noting that the money saved could be invested in audience-drawing shows and potentially lucrative advertising business.
- Netflix not following through on the arrangement will likely see the storied Hollywood studio and group of TV properties which includes CNN fall into the hands of Paramount, fundamentally reshaping US media.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 16.5% | 25% | 60.0 ptsModerate (16.5%) - Decent growth |
| EPS Growth Next 5Y ? | 21.9% | 25% | 70.0 ptsGood (21.9%) - Solid outlook |
| Target Price Upside ? | 6.2% | 20% | 35.0 ptsBelow Screener (6.2%) - Target: $114.48 vs Current: $107.79 |
| Gross Margin % ? | 48.6% | 15% | 60.0 ptsSolid (48.6%) - Decent margins |
| Drawdown from 52-Wk High ? | -19.6% | 15% | 40.0 ptsMild Pullback (-19.6%) - Light entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About NFLX
- Netflix, Inc. provides entertainment services worldwide.
- The company offers television (TV) series, documentaries, feature films, games, and live programming across various genres and languages.
- It also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices.
- Netflix, Inc. was incorporated in 1997 and is headquartered in Los Gatos, California.