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Netflix
Netflix (NFLX) just set a powerful tone with the kick-off of the technology sector earnings season. The company blew away subscriber net additions with 5.2 million, with most investors looking for net adds around 3.2 million. The international growth was incredible at 4.14 million, while the US saw 1.07 million additions. The company noted in its release the US reading was the highest since the second quarter of 2011.  For the third quarter, the company is looking for total net adds of 4.4 million. Additionally, the company issued third quarter guidance well ahead of analyst estimates. According to Ycharts, analysts had been looking for EPS of $0.22 and revenue of $2.86 billion. The company guided for EPS of $0.32 and revenue of $2.969 billion.
These results and guidance led to an 11 percent jump in the share price to an all-time around $179.
Subscriber Growth
For Netflix, though this may only really be the start of their international subscriber growth ramping up.
Based on previous trends and projection based on those trends, the company could reach 70 million international subscribers over the next 4 quarters, and total subscribers of nearly 130 million by the second quarter of 2018.
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Technology Sector
At this point, the Technology sector has recouped most of its loss suffer over the Technology Meltdown two weeks ago.
Netflix Sets The Sentiment
If the Netflix results are a sign of the future results to come, then this sector could have much further run.
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Disclaimer:
Michael Kramer and the Clients of Mott Capital own shares of NFLX.
Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendation made during the past twelve months. Past performance is not indicative of future performance.
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Charts used with the permission of Bloomberg Finance L.P. This report contains independent commentary to be used for informational and educational purposes only. Michael Kramer is a member and investment adviser representative with Mott Capital Management. Mr. Kramer is not affiliated with this company and does not serve on the board of any related company that issued this stock. All opinions and analyses presented by Michael Kramer in this analysis or market report are solely Michael Kramer’s views. Readers should not treat any opinion, viewpoint, or prediction expressed by Michael Kramer as a specific solicitation or recommendation to buy or sell a particular security or follow a particular strategy. Michael Kramer’s analyses are based upon information and independent research that he considers reliable, but neither Michael Kramer nor Mott Capital Management guarantees its completeness or accuracy, and it should not be relied upon as such. Michael Kramer is not under any obligation to update or correct any information presented in his analyses. Mr. Kramer’s statements, guidance, and opinions are subject to change without notice. Past performance is not indicative of future results. Neither Michael Kramer nor Mott Capital Management guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment commentary presented in this analysis. Strategies or investments discussed may fluctuate in price or value. Investments or strategies mentioned in this analysis may not be suitable for you. This material does not consider your particular investment objectives, financial situation, or needs and is not intended as a recommendation appropriate for you. You must make an independent decision regarding investments or strategies in this analysis. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Before acting on information in this analysis, you should consider whether it is suitable for your circumstances and strongly consider seeking advice from your own financial or investment adviser to determine the suitability of any investment.