Netflix: shares jump after stellar quarter
(CercleFinance.com) - Late on Monday Netflix reported a 43% leap in revenue for the first quarter, the fastest pace in its history since it began streaming, with the company attracting ever more subscribers.
Revenue grew to 3.7 billion dollars in the first three months of the year, up from 2.6 billion dollars a year ago, while net income reached 290 million dollars, compared to 178 million dollars in the first quarter of 2018.
Global net adds totalled a new first-quarter record of 7.41 million people, up 50% year-on-year and ahead of the group's forecast of 6.35 million.
The online video streaming service currently has 125 million members worldwide.
This performance was hailed by Wall Street analysts.
Credit Suisse says the company is now "getting closer and closer to achieving escape velocity" and has consequently raised its target price to 330 dollars, up from 266 dollars previously.
Meanwhile, in a research report, Canadian broker Canaccord Genuity says it is feeling "very confident in the near- and mid-term fundamental outlook" and has also raises its target price from 280 dollars to 350 dollars.
The only hitch in this flurry of praise came as analysts at Jefferies expressed their concerns about "operational expense and cash burn that remain at risk."
Netflix shares are currently up 6.8% at 328.7 dollars.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
Revenue grew to 3.7 billion dollars in the first three months of the year, up from 2.6 billion dollars a year ago, while net income reached 290 million dollars, compared to 178 million dollars in the first quarter of 2018.
Global net adds totalled a new first-quarter record of 7.41 million people, up 50% year-on-year and ahead of the group's forecast of 6.35 million.
The online video streaming service currently has 125 million members worldwide.
This performance was hailed by Wall Street analysts.
Credit Suisse says the company is now "getting closer and closer to achieving escape velocity" and has consequently raised its target price to 330 dollars, up from 266 dollars previously.
Meanwhile, in a research report, Canadian broker Canaccord Genuity says it is feeling "very confident in the near- and mid-term fundamental outlook" and has also raises its target price from 280 dollars to 350 dollars.
The only hitch in this flurry of praise came as analysts at Jefferies expressed their concerns about "operational expense and cash burn that remain at risk."
Netflix shares are currently up 6.8% at 328.7 dollars.
Copyright (c) 2018 CercleFinance.com. All rights reserved.