We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights: Netflix, Disney, Apple, Amazon and Roku
Read MoreHide Full Article
For Immediate Release
Chicago, IL –January 16, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Netflix (NFLX - Free Report) , Disney (DIS - Free Report) , Apple (AAPL - Free Report) , Amazon (AMZN - Free Report) and Roku (ROKU - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Buy Netflix (NFLX - Free Report) Before Earnings, After Raised Streaming Prices?
Netflix saw its stock price climb 6% Tuesday after the streaming TV powerhouse raised its prices on all of its streaming plans for the first time in over a year just a few days before it reports its Q4 financial results. The rate hike comes as Netflix continues to spend billions of dollars on original content as it prepares to fight off competition from Disney, Apple and others.
Pricing
Netflix raised its prices on all of its plans, with the higher prices going into effect immediately for new customers. Meanwhile, current customers will see their bills climb over the next few months, according to reports. The company’s most popular standard plan, which allows users to stream on two devices at once, climbed from $11 to $13 per month. The company also lifted the price of its basic plan to $9 a month, up from $8. Meanwhile, the company’s four-screen, premium offering popped from $14 to $16 a month.
Netflix’s new rates represent between a 13% to 18% price hike and mark the largest increase since the company launched streaming 12 years ago. Netflix last raised its prices in October of 2017. “We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience for the benefit of our members,” a Netflix spokesperson told The Associated Press.
Shares of NFLX climbed over 6% through late-morning trading Tuesday to roughly $353. Investors should note that despite the streaming firm’s post-Christmas rally, Netflix stock still rests roughly 17% below its 52-week high of $423.21 a share. This sets up what could be a solid buying opportunity for those high on Netflix.
Outlook
Along with its newly raised prices, Netflix has also seen a wave of positive analyst activity over the last few weeks. Raymond James analyst Justin Patterson upgraded Netflix stock from “outperform” to a “strong buy,” citing the company’s approaching profit inflection, strong content slate, and much more. Patterson also slapped a new $450 a share price target on NFLX.
UBS also voiced positivity for NFLX stock last week. Analyst Eric Sheridan lifted his rating from “neutral” to “buy” and upped his price target to $410 a share. Plus, Goldman Sachs analyst Heath Terry reiterated his buy rating and $400 price target.
With that said, Netflix’s content spending, which is set to reach $13 billion in 2018, has made some investors nervous. But the reason for the spending is simple: Netflix and CEO Reed Hastings understand that the firm must spend on content in order to roll out award-winning and buzz-worthy shows and movies in order to attract new subscribers and retain current members in an ever more crowded streaming market, where its competitors, such as Amazon, have much more money to play with.
Q4 Estimates
Looking ahead to Thursday, Netflix’s Q4 revenues are projected to surge 28% from the year-ago period to reach $4.21 billion, based on our current Zacks Consensus Estimate. This would mark a slowdown compared to Q3’s 34% climb and Q2 and Q1’s 40% expansion. Meanwhile, NFLX’s full-year revenues are projected to jump 35% from $11.69 billion in 2017 to reach $15.81 billion in 2018.
Moving on, the firm’s adjusted Q4 earnings are projected to plummet 39% to $0.25 a share. Despite NFLX’s expected Q4 downturn on the bottom line, its full-year 2018 earnings are expected to skyrocket 110.4% to reach $2.63 per share, with further earnings growth projected in 2019.
Despite its growing revenues and negative cash flow concerns, subscriber growth might still be the metric Wall Street cares about the most. Netflix expects to add 9.4 million subscribers in Q4 to help bring its worldwide total to 146.5 million. For reference, Netflix added 8.3 million users in the prior-year quarter and 6.96 million in Q3.
Bottom Line
Netflix has exploded from content aggregator to original TV and movie powerhouse and legitimate Hollywood-style studio in roughly five years. Obviously, Netflix will soon face competition not only from Hulu and Amazon Prime, but also Disney, Apple and others . And let’s not forget that other companies also have original content and are focused on rolling out more streaming offerings.
But Netflix boasts more users than its current peers and has a massive head start on the newcomers. Netflix also recently took home more Golden Globes than any another other network or streaming service and ended HBO’s 17-year run at the top of the Emmy nomination last year. And if we look at recent jumps from fellow streaming firms such as Roku, it seems hard to think Netflix won’t at least climb by its old highs at some point in the near future.
Netflix is currently scheduled to release its Q4 financial results after the closing bell on Thursday, January 17.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights: Netflix, Disney, Apple, Amazon and Roku
For Immediate Release
Chicago, IL –January 16, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Netflix (NFLX - Free Report) , Disney (DIS - Free Report) , Apple (AAPL - Free Report) , Amazon (AMZN - Free Report) and Roku (ROKU - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Buy Netflix (NFLX - Free Report) Before Earnings, After Raised Streaming Prices?
Netflix saw its stock price climb 6% Tuesday after the streaming TV powerhouse raised its prices on all of its streaming plans for the first time in over a year just a few days before it reports its Q4 financial results. The rate hike comes as Netflix continues to spend billions of dollars on original content as it prepares to fight off competition from Disney, Apple and others.
Pricing
Netflix raised its prices on all of its plans, with the higher prices going into effect immediately for new customers. Meanwhile, current customers will see their bills climb over the next few months, according to reports. The company’s most popular standard plan, which allows users to stream on two devices at once, climbed from $11 to $13 per month. The company also lifted the price of its basic plan to $9 a month, up from $8. Meanwhile, the company’s four-screen, premium offering popped from $14 to $16 a month.
Netflix’s new rates represent between a 13% to 18% price hike and mark the largest increase since the company launched streaming 12 years ago. Netflix last raised its prices in October of 2017. “We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience for the benefit of our members,” a Netflix spokesperson told The Associated Press.
Shares of NFLX climbed over 6% through late-morning trading Tuesday to roughly $353. Investors should note that despite the streaming firm’s post-Christmas rally, Netflix stock still rests roughly 17% below its 52-week high of $423.21 a share. This sets up what could be a solid buying opportunity for those high on Netflix.
Outlook
Along with its newly raised prices, Netflix has also seen a wave of positive analyst activity over the last few weeks. Raymond James analyst Justin Patterson upgraded Netflix stock from “outperform” to a “strong buy,” citing the company’s approaching profit inflection, strong content slate, and much more. Patterson also slapped a new $450 a share price target on NFLX.
UBS also voiced positivity for NFLX stock last week. Analyst Eric Sheridan lifted his rating from “neutral” to “buy” and upped his price target to $410 a share. Plus, Goldman Sachs analyst Heath Terry reiterated his buy rating and $400 price target.
With that said, Netflix’s content spending, which is set to reach $13 billion in 2018, has made some investors nervous. But the reason for the spending is simple: Netflix and CEO Reed Hastings understand that the firm must spend on content in order to roll out award-winning and buzz-worthy shows and movies in order to attract new subscribers and retain current members in an ever more crowded streaming market, where its competitors, such as Amazon, have much more money to play with.
Q4 Estimates
Looking ahead to Thursday, Netflix’s Q4 revenues are projected to surge 28% from the year-ago period to reach $4.21 billion, based on our current Zacks Consensus Estimate. This would mark a slowdown compared to Q3’s 34% climb and Q2 and Q1’s 40% expansion. Meanwhile, NFLX’s full-year revenues are projected to jump 35% from $11.69 billion in 2017 to reach $15.81 billion in 2018.
Moving on, the firm’s adjusted Q4 earnings are projected to plummet 39% to $0.25 a share. Despite NFLX’s expected Q4 downturn on the bottom line, its full-year 2018 earnings are expected to skyrocket 110.4% to reach $2.63 per share, with further earnings growth projected in 2019.
Despite its growing revenues and negative cash flow concerns, subscriber growth might still be the metric Wall Street cares about the most. Netflix expects to add 9.4 million subscribers in Q4 to help bring its worldwide total to 146.5 million. For reference, Netflix added 8.3 million users in the prior-year quarter and 6.96 million in Q3.
Bottom Line
Netflix has exploded from content aggregator to original TV and movie powerhouse and legitimate Hollywood-style studio in roughly five years. Obviously, Netflix will soon face competition not only from Hulu and Amazon Prime, but also Disney, Apple and others . And let’s not forget that other companies also have original content and are focused on rolling out more streaming offerings.
But Netflix boasts more users than its current peers and has a massive head start on the newcomers. Netflix also recently took home more Golden Globes than any another other network or streaming service and ended HBO’s 17-year run at the top of the Emmy nomination last year. And if we look at recent jumps from fellow streaming firms such as Roku, it seems hard to think Netflix won’t at least climb by its old highs at some point in the near future.
Netflix is currently scheduled to release its Q4 financial results after the closing bell on Thursday, January 17.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.