Technology Stocks

Netflix, Inc. (NASDAQ:NFLX) Tracks Sideways Into Major Earnings Report

Netflix, Inc. (NASDAQ:NFLX) recently announced it will post its third-quarter 2018 financial results and business outlook on Tuesday, October 16, 2018, at approximately 1:05 p.m. Pacific Time. Last quarter, the company disappointed investors and paid a big price.

Recent action has tracked basically sideways with some sharp ups and downs, but very little net movement over the past month as we approach this next report, which will determine a great deal about the company’s future in terms of both investor sentiment and the company’s operational aggressiveness toward the future.

Netflix, Inc. (NASDAQ:NFLX) promulgates itself as 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 January 22, 2018, it had approximately 117 million members in 190 countries. Netflix, Inc. was founded in 1997 and is headquartered in Los Gatos, California.

According to company materials, “Netflix is the world’s leading internet entertainment service with over 130 million memberships in over 190 countries enjoying TV series, documentaries and feature films across a wide variety of genres and languages. Members can watch as much as they want, anytime, anywhere, on any internet-connected screen. Members can play, pause and resume watching, all without commercials or commitments.”

Now commanding a market cap of $153B, NFLX has a significant war chest ($3906.4M) of cash on the books, which must be weighed relative to about $6079.6M in total current liabilities.

One should also note that debt has been growing over recent quarters. NFLX is pulling in trailing 12-month revenues of $13878.7M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 40.3%.

We will update the story again soon as further details emerge.

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