Scalper1 News
Netflix ( NFLX ) shares are now starting to make a comeback after the news that its fourth-quarter U.S. subscriber growth missed expectations. The stock fell as much as 22% in the weeks following the news, despite strong overall subscriber additions. But with a new Baird survey pointing to “solid” U.S. subscriber results in Q1, Netflix may be able to redeem itself come its next quarterly report in about two weeks. Baird said that the strong Q1 U.S. subscriber numbers can be attributed to the recent launch of new seasons of successful Netflix originals including “House of Cards” and “Daredevil.” Shares are climbing 3% in volume that’s tracking a little lighter than average Tuesday. The stock retook its downward-sloping 50-day line earlier this month and is now approaching the 200-day line. Netflix dropped below that level in the wake of the report of its weak Q4 subscriber growth. For Q1, analysts expect earnings to fall 20% amid rising costs, while revenue jumps 25%. Netflix is seen as the leader in video streaming, with an expanded global rollout announced in January. But it’s facing increasing competition as others start to take advantage of the cord-cutting trend. Competitor Hulu, a joint venture among Disney ( DIS ), Comcast ( CMCSA ) and 21 st Century Fox ( FOXA ), is starting to create its own original content. Hulu and Netflix have both recently launched virtual reality apps that work with Samsung Gear VR, powered by Facebook ( FB )-owned Oculus. The high-end Oculus Rift headset began shipments this week. Disney was up 0.2% Tuesday, Comcast added 0.9%, and Fox was essentially flat. Facebook climbed 2.1%. Scalper1 News
Scalper1 News