Broker of the Week Oanda - Read Full Review

Free Top Brokers Comparison Service


Netflix tops 200 million subscribers with year-end flourish, stock jumps 8%


Netflix Inc. topped 200 million streaming subscribers for the first time at the end of 2020, as sign-ups surged despite higher prices in the U.S. and Canada.

On Tuesday afternoon, Netflix
reported 8.5 million net new subscribers in its fourth quarter, a dramatic uptick from the 2.2 million reported in the previous quarter. Netflix lured 25.9 million new subscribers in the first half of the year, as shelter-in-place orders related to the COVID-19 pandemic spread globally, for an annual net gain of 36.6 million subscribers to 203.7 million total.

The No. 1 streaming service reported net earnings of $542 million, or $1.19 a share, compared with net income of $1.30 a share in the year-ago quarter. Revenue improved to $6.64 billion from $5.47 billion a year ago. Analysts surveyed by FactSet had expected adjusted earnings of $1.36 a share on sales of $6.6 billion.

The news sent Netflix shares up more than 8% in after-hours trading Tuesday, despite profits being lower than expected.

After Netflix reported modest gains in the third quarter, there were fears that demand for Netflix was cooling amid intensifying competition, and content, from the likes of Walt Disney Co.’s
Disney+ and Hulu, Apple Inc.’s
Apple TV+, AT&T Inc.’s
HBO Max, Inc.’s
Prime Video, and Comcast Corp.’s
Peacock. Netflix began increasing the price of popular streaming tiers in the U.S. and Canada near the end of last year as a way to counteract slowing subscriber growth.

Importantly, Netflix executives said in a letter to shareholders that Netflix was approaching sustainable free cash flow after massive debt spending to develop content in recent years.

“We believe we are very close to being sustainably [free-cash-flow] positive,” they wrote “For the full year 2021, we currently anticipate free cash flow will be around break even (vs. our prior expectation for -$1 billion to break even).”

“Combined with our $8.2 billion cash balance and our $750m undrawn credit facility, we believe we no longer have a need to raise external financing for our day-to-day operation,” the executives wrote.

Netflix shares are up 47% over the past 12 months, while the S&P 500 index
has risen 13%, but had fallen over the past six months on concerns about slowing growth.


Source link

We will be happy to hear your thoughts

Leave a reply

Trading foreign exchange on margin carries a HIGH LEVEL OF RISK, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose.

Advertiser Disclosure: helps investors across the globe by spending over hours each month testing and researching online brokers.

How do we make money? Our partners compensate us through paid advertising.

While partners may pay to provide offers or be featured, e.g. exclusive offers, they cannot pay to alter our recommendations, advice, ratings, or any other content throughout the site.

Furthermore, our content and research teams do not participate in any advertising planning nor are they permitted access to advertising campaign data.

Disclaimer: It is our organization’s primary mission to provide reviews, commentary, and analysis that are unbiased and objective.

While has some data verified by industry participants, it can vary from time to time.

Operating as an online business, this site may be compensated through third-party advertisers.

Our receipt of such compensation shall not be construed as an endorsement or recommendation by, nor shall it bias our reviews, analysis, and opinions.

Best Forex Brokers Reviews
Reset Password
Compare items
  • Total (0)