You were lucky yesterday because of that fake bomb news. But today all good news. Get ready to be slaughter.
Stocks resumed a move higher today after a fake tweet briefly rattled the markets. Hackers broke into the Associated Press twitter feed and erroneously reported a terror attack on the White House. The Dow momentarily plunged 145 points into negative territory before the AP sent out notification that the account was compromised. This all occurred in a matter of four minutes.
All major indexes closed 1% higher for the day lifted higher by a flurry of earnings beats. A report on new home sales also seemed to give investors encouragement. The Commerce Department says new home sales rose 1.5% in March to an adjusted annual rate of 417,000. Despite the rise, the tally came in below analyst estimates of 420,000.
Netflix (NFLX) took flight today rising 25% on its earnings released after yesterday's closing bell. It posted profits of 31-cents a share, topping estimates of 18-cents, and revenues were right in line with expectations. Netflix is largely crediting "House of Cards" for the beat. The show was the company's biggest foray so far into original programming. Some other highlights of the report: Netflix now has 29.2 million paid subscribers. That's even slightly more than perennial powerhouse HBO. In addition, Netflix will soon offer an option that allows four streams at once aimed at large families. With today's gains, the stock price has more than doubled this year, and is at its highest level since September 2011.
Three Dow components reported before this morning's opening bell. Dupont (DD) rose 4% and Travelers (TRV) rose more than 2% after beating estimates. However, United Technologies (UTX) fell even as it beat earnings estimates due to lower than expected revenue.
As for Dupont, it posted earnings of $1.56 per share, beating estimates by 4-cents although revenue was right in line with expectations. The company says profits were bolstered by improving sales of seeds and agriculture chemicals.
Travelers posted profits of $2.33 per share, up 11% from a year ag
Netflix and Hasbro Announce Expanded Multi-Year Kids Programming Agreement
One must believe that I have absolutely gone mad to state that Netflix (NFLX) with a current PE ratio of ~520 is actually not overvalued (and I am sure I will have the comments proving it). However, I will explain how it is I come to that conclusion, in that actually, there is much more to Netflix's PE value than meets the eye.
Netflix has recently stated in the latest earnings report that family packages may be re-priced in the $12 per month range for streaming packages that allow more than one (and potentially up to four) streaming viewings at a time. This way the kids are able to watch their latest animated flick, while Mom & Dad can watch whatever they like upstairs. Even thinking of an increase of $4 up to $12 a month would not deter me away from subscription, as there are times with my family that we are streaming two or more movies at once, and with small kids, it saves the pocket book in continually renting or purchasing movies for those rainy days indoors.
Now Reed Hastings has stated that he will not move away from the $8 a month subscription, however, with the new popular Netflix Original content, the latest Disney licensing agreement, as well as a large library content, one can easily argue that paying $12 a month for the current service would still be a deal. However, Reed is looking to continue to move Netflix into as many households as possible, and with over 115 Million households (2010 census) in the US, Netflix is nearing 30% of households (~ 29 Million subscriptions at Q1 earnings call).
Though Reed Hastings is keeping the low subscription rate at the $8 per month all you can view rate, one could easily consider an increase of $2 to $4 at some point in the near future. Particularly since there is already a move to a family plan of streaming at $12 a month (This is also a great way for Netflix to test the price sensitivity of its customers to a subscription price increase). Moreover, evaluating the effects of a subscription increase provides a m
A bunch of positive earnings coming out today. The market is going up. Netflix as well will go up. The shorts are going to get beat up once again.
You are trying very hard to push down this dog. But it will keep going up.
Where the hell have you been? Earnings was released on monday!!!
Netflix did much better than expectations for three consecutive quarters. I am going to keep my 3000 shares till it hits $300.
Actually you still have maybe two more days before your put is out of the money.
Smart. Because your put and your call will always be out of the money.
Your order will never go through.
Moley fool has been shorting this since 2011. So of course they are going to write anything to drive down this dog.
Not all. Only some. And the sales were tiny.
Once again, keep your head out fo the sand. This stock will keep going up regardless of fundamentals. A business model that is bring in more and more revenue every quarter is a successful business.
These two companies has a huge difference in financial standing.
But why the one with weaker financial standing is more attactive to shareholders?
Simply put, Netflix keeps improving it's business model.
While Apple is running out of innovation!
Time and time again........It is all about the business model.
It does not matter how much cash the company has.
As long the business model is working... then buyers will start pouring their money into this stock.
Why would it be a dilution when there are over 56 million shares outstanding? The 2.3 million shares is only 4% of the total out standing shares.
If you truely were paying any attention to P/E, you don't even want to short this dog. This dog is moving basing on just earnings. So the fundamentals have been thrown out of the window a long long time ago.
Cover before it reaches $250.
During the CC, Hasting mentioned that Netflix Profit Margin Widen In Q1 2013.
That means their debt will be paid off sooner than analyst thought.