Published: Sat, October 20, 2018
Markets | By Otis Pena

Netflix Q3 2018 Takeaways: The Underlying Kingpin in the Global Media Landscape

Netflix Q3 2018 Takeaways: The Underlying Kingpin in the Global Media Landscape

Netflix shares have gained about 81 percent this year and are worth six times what they were at the start of 2015, a reflection of the overwhelming faith investors have in the company's lead in video streaming.

Shares of Netflix (NFLX) skyrocket almost 10% in pre-market trading Wednesday after the streaming giant delivered third-quarter financial results that crushed Wall Street's expectations in an upside surprise. The growth record is going to prolong Netflix's title as one of the best-performing stocks on Wall Street and also provide a leeway to spend more funds on original programming.

India is already one of the biggest markets for YouTube, a chief competitor, and holds great potential for Netflix.

During the quarter, the company added 6.96 million net subscribers-1.09 million new subscribers in the US and 5.87 million internationally.

Netflix fell well shy of its subscriber goals for the April-to-June period, raising fears that fiercer competition from Amazon, Hulu, HBO and other streaming services was siphoning away viewers. The company had revenue of $4 billion during the quarter, compared to analyst estimates of $3.99 billion. The concerns initially came after investors sent Netflix shares falling 14% for missing Wall Street's subscriber growth targets in Q2.

In related news, Director Richard N. Barton sold 350 shares of Netflix stock in a transaction that occurred on Thursday, October 11th.

Netflix is planning a new film and television production hub in New Mexico; new research finds that one-third of "gluten-free" foods sold in USA restaurants actually contains trace levels of the substance.

Major London rail hub suffers disruption
Services from London Paddington will depart at 25 and 55 minutes past the hour. No one is held to account for poor service", she said.

The video-streaming service added 7 million subscribers worldwide from July through September, far above the company's target of 5 million and exceeding analyst projections. If the stock keeps increasing over the advancing weeks it will highlight those investors still possess a robust appetite for hazardous companies, a viewpoint that might fall over into other technology firms.

Netflix officials predict the company will add another 9.4 million viewers by the end of this year. Total revenue rose to $4 billion, in line with analysts' expectations, from $2.98 billion a year earlier. That's an increase of 15% and 13% compared to Q4 previous year.

Netflix is investing more than $8bn in entertainment programming this year to lure new customers around the world.

Netflix shares typically fluctuate widely after earnings, and this quarter was no exception.

Shares have surged more than two-thirds this year and closed on Tuesday at $346.40 in NY, valuing the company at nearly $154bn.

Jim Nail, analyst at Forrester Research, said the latest figures suggested that the second quarter result had been an "aberration, likely the results of a somewhat low volume of new content".

Like this: