Netflix Inc. (NASDAQ: NFLX)
On Monday after the market closed, Netflix Inc ($NFLX) announced first quarter results that were slightly better than expected but missed on the amount of users added.
The company the earned 40 cents per share on $2.64 billion in revenue which was in line with analyst expectations. This is compared to $1.96 billion earned last year for the same period.
Netflix only added 3.5 million international users compared to expectations 4.5 million but is expecting another 3.2 million in the second quarter.
Shares of Netflix initially sold off following their earnings but quickly rebounded and are now slightly up in the pre-market. Shares are finding a lot of resistance in the $149.70 area so look for that to continue to act as resistance through out the morning.
If shares can get above that level then we will be in uncharted territory and will have to rely on big psychological levels like $150 as a point of resistance.
Look for shares to be more volatile than normal as active traders look to take advantage of a bigger move when the market opens.
“In Q1, we surpassed $2.5 billion in quarterly streaming revenue and added 5 million members. The opportunity provided to us by the growth of the global internet is gigantic and our plan is to keep investing as we increase membership, revenue and operating margins.” –Netflix
Netflix, Inc. operates as an Internet subscription service company, which provides subscription service streaming movies and TV episodes over the Internet and sending DVDs by mail.
The company operates its business through the following segments: Domestic streaming, International streaming and Domestic DVD.
Netflix obtains content from various studios and other content providers through fixed-fee licenses, revenue sharing agreements and direct purchases.
It markets its service through various channels, including online advertising, broad-based media, such as television and radio, as well as various partnerships.
Netflix was founded by Marc Randolph and Wilmot Reed Hastings Jr., on August 29, 1997 and is headquartered in Los Gatos, CA. –MarketWatch