Netflix Inc (NASDAQ: NFLX)
On Monday after the close, Netflix Inc ($NFLX) announced fourth quarter earnings that blew past expectations and sent shares soaring in the post market.
The streaming TV company announced earnings per share of 41 cents on $3.29 billion in revenue while analyst were looking for 41 cents per share on $3.28 billion in revenues.
They also added 8.3 million new subscribers in the fourth quarter, cruising by estimates of just 6.4 million.
Executive Comments
We had a beautiful Q4, completing a great year as internet TV expands globally. In 2017, we grew streaming revenue 36% to over $11 billion, added 24 million new memberships (compared to 19 million in 2016), achieved for the first time a full-year positive international contribution profit, and more than doubled global operating income . . .In Q4, we registered global net adds of 8.3 million, the highest quarter in our history and up 18% vs. last year’s record 7.05 million net adds. This exceeded our 6.3m forecast due primarily to stronger than expected acquisition fueled by our original content slate and the ongoing global adoption of internet entertainment. Geographically, the outperformance vs. guidance was broad-based. –Shareholder Letter
$NFLX Technicals
Looking at the 5-minute chart above you can see shares absolutely took off following the Q4 earning results. With shares currently trading $251.75 in the premarket, that puts them at all time highs and roughly up 10.6% from yesterdays close and 28% on the year.
We are in unchartered territory which means we will have to pay attention to macro trend lines and whole and half dollar levels. Yesterdays highs at $227.79 will be support if shares drop that low but before that we should see support at $254 which has held it up in the premarket. $250 will also be an important level to watch.
If you are looking to trade $NFLX today make sure to manage your risk above all else. It will be very volatile with large spreads most likely.
Company Profile
Netflix, Inc., an Internet television network, engages in the Internet delivery of television (TV) shows and movies on various Internet-connected screens. It operates in three segments: Domestic Streaming, International Streaming, and Domestic DVD.
The company offers TV shows and movies, including original series, documentaries, and feature films. It offers members with the ability to receive streaming content through a host of Internet-connected screens, including TVs, digital video players, television set-top boxes, and mobile devices.
The company also provides DVDs-by-mail membership services. As of April 28, 2017, it had approximately 100 million members in 190 countries. Netflix, Inc. was founded in 1997 and is headquartered in Los Gatos, California. -YahooFinance
