Netflix, Inc. (NASDAQ: NFLX)
Netflix, Inc. (NFLX), an online streaming video company yesterday announced they will be expanding to a 130 new countries around the world. This will bring the total countries that Netflix reaches to 190. That would mean that Netflix is reaching about two-thirds of the world’s online population. The one major market that is still not being reached is China but CEO Reed Hastings had this to say “We are now live in nearly every country in the world besides China, where we hope to also be in the future.” (The Street).
Netflix, Inc. CEO’s Comments
“Today you are witnessing the birth of a new global Internet TV network,” said Hastings. “With this launch, consumers around the world — from Singapore to St. Petersburg, from San Francisco to Sao Paulo — will be able to enjoy TV shows and movies simultaneously — no more waiting. With the help of the Internet, we are putting power in consumers’ hands to watch whenever, wherever and on whatever device. From today onwards, we will listen and we will learn, gradually adding more languages, more content and more ways for people to engage with Netflix,” said Hastings. “We’re looking forward to bringing great stories from all over the world to people all over the world.” PR Newswire
NFLX Technical Analysis
NFLX gapped down in price yesterday to $105.25, down from the prior day’s close of $107.66, which is a 2% decrease in price. Taking a look at the daily chart, we can see the last time NFLX traded below this price level was on November 13th when it traded at $103.65. As of mid afternoon on Wednesday NFLX is up over 5%, trading at $113.34. The reason for the move up is the announcement of Netflix expanding to a 130 new markets worldwide. Taking a closer look at the daily chart we can see that NFLX has been on an overall decline dating back to December 4th when it traded at $130.99. Some of that decline can be attributed to analysts and investors concerns about increased content costs. However with the expansion and increases in possible revenue, the future of the company still looks very bright. NFLX has a float of 419.12 million shares and is trading 1.5 times the normal daily trading volume. For trading purposes, I would be a buyer at these levels looking for a run through $120.
Company Profile
“Netflix, Inc. (Netflix), incorporated on August 29, 1997, is a provider of Internet television network. The Company has over 57 million streaming members in over 50 countries. The Company’s members can watch more than two billion hours of television (TV) shows and movies per month, including original series, documentaries and feature films in Internet-connected screen. The Company has three operating segments: Domestic streaming, International streaming and Domestic DVD. The Domestic and International streaming segments derive revenues from monthly membership fees for services consisting of streaming content. The Domestic DVD segment derives revenues from monthly membership fees for services consisting of DVD-by-mail. Netflix’s members can watch TV shows and movies directly on their TVs, computers and mobile devices. The Company offers streaming service both domestically and internationally. The Company’s International streaming segment offers streaming service in Canada, Latin America, the United Kingdom, Ireland, Finland, Denmark, Sweden, Norway, Netherlands, Germany, Austria, Switzerland, France, Belgium and Luxembourg. Its members can play, pause and resume watching, all without commercials or commitments. Additionally, in the United States, Netflix’s members can receive DVDs to their homes.” Reuters
