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The season of reports continues. Netflix has crossed the 100-billion capitalization threshold

The season of reports continues. Netflix has crossed the 100-billion capitalization threshold
January 23
09:00 2018

Netflix Incorporated, which offers the market, perhaps, the most famous and large service for subscribing to streaming video, has issued a press release on its financial results.

The management of the famous service has managed to get a greater number of subscribers than it was expected both by experts of the company and third-party analysts. During the final quarter of the last year, the growth of subscribers amounted to 8.3 million people, although the figure of 6.3 million was predicted.

The information about the company’s net profit was also disclosed. The indicators for the 4th quarter are as follows:

– net profit – $ 185.5 million ($ 0.41 per share);

– revenue – 3.29 billion US dollars.

For comparison, over the same period of 2016, the company’s net profit was $ 130 million; the revenue was less than the current one exactly by a third.

During the year of 2017, Netflix Corporation increased its revenue figures from 8.8 billion USD to 11.7 billion USD, profitability indicators grew from 187 million USD to 559 million USD.

The company’s plans for the current year were announced in the press release. So, it is going to increase the number of subscribers to 6.35 million people in order to raise $ 3.7 billion of the revenue and make a profit of $ 0.63 in terms of one share of the company.

Netflix will continue to invest a great deal in the production of its own content. In 2018, it is planned to spend a record $ 8 billion for this purpose.

Market expectations are less optimistic. It is assumed that the company’s revenue in 2018 will be 3.5 billion US dollars; the profit will be equal to 0.54 US dollars (in terms of one share).

Due to such a strong report, Netflix shares have risen rapidly (on Monday, the growth was 8.3%). That’s why Netflix has joined the prestigious club of those companies whose capitalization exceeds 100 billion US dollars.

The growth of stock prices will continue for some time and then the slight adjustment is expected.


The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade

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