Netflix reported a loss in its U.S. subscriber count for the quarter ending June. This in its first quarterly decline in domestic subscribers since 2011. The company also missed estimates of worldwide subscriber growth.
The online video streaming giant reported a loss of -126,000 domestic paid subscribers, compared with analysts’ expectations for a 352,000 gain.
Global subscribers of Netflix platform grew by 2.83 million – falling short of analysts' growth expectation of 4.8 million.
Netflix has blamed price hikes behind the lower-than-expected subscriber figures for the quarter. It said that it missed forecasts in mostly those regions that saw price increases in subscription plans
However, the company’s earnings for the quarter came in at 60 cents per share - which is 4 cents ahead of the Street consensus expectations. Total revenues rose +26% to $4.923 billion, largely in-line with analysts' forecasts.
Looking ahead, Netflix said that it expects revenues of $5.25 billion for the third quarter, with global streaming paid additions of 7 million. It expressed optimism for its hit series “Stranger Things” and its latest season, and also expects strong viewership for the new seasons of “The Crown” and “Orange is the New Black”.
The 10-day moving average for NFLX crossed bearishly below the 50-day moving average on April 23, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on April 17, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on NFLX as a result. In of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
NFLX moved below its 50-day moving average on April 19, 2024 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NFLX declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where NFLX's RSI Indicator exited the oversold zone, of 23 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 11 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NFLX advanced for three days, in of 314 cases, the price rose further within the following month. The odds of a continued upward trend are .
NFLX may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 286 cases where NFLX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. NFLX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (12.920) is normal, around the industry mean (5.464). P/E Ratio (51.065) is within average values for comparable stocks, (87.119). Projected Growth (PEG Ratio) (1.889) is also within normal values, averaging (2.822). NFLX has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.040). P/S Ratio (8.190) is also within normal values, averaging (28.528).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of online movie rental subscription services
Industry MoviesEntertainment