Netflix could surpass 100 million subscribers by the end of this week

Cornelia Mascio
Aprile 20, 2017

People were able to watch videos everywhere on their smartphones and tablets, said Michael Pachter Wedbush Securities analyst. "But Netflix clearly had a vision before those devices became so ubiquitous".

The US-based streamer added 1.42 million US subscribers and 3.53 million internationally during the period, down on its projections of 1.5 million and 3.7 million respectively.

Netflix (NFLX) is estimated to have ~19.0 million subscribers in Europe.

Progress toward that ambitious goal has helped drive the company's stock price progressively higher over the past five years.

By the end of March, Netflix had almost 48 million subscribers outside the United States. The actual figure came in at 4.95 million additional subscribers.

At the same time, Netflix is still a ways behind pay-TV channel HBO (with 134 million global subscribers) but HBO saw a quick spurt of growth after adopting an internet-only option (somewhat inspired by the success of Netflix). Netflix finished 2016 with 93.8 million subscribers worldwide.

Netflix's lackluster subscriber addition numbers is mostly due to its less than stellar content offerings during Q1, analysts say.

But I think things will likely improve this year with the roll out of the new seasons of House of Cards and Stranger Things, both blockbuster shows that represent the very best of their "Originals" brand. Perhaps more surprising, global net additions of 3.53 million also missed guidance of 3.7 million. Netflix also plans to release three big-budget movies. In the first quarter Netflix was reported to have 98.75 million subscribers but this weekend will finally bring glad tidings for the site.

Netflix shares traded down about 0.8% in after-hours trading to $146.02, in a 52-week range of $84.50 to $148.29.

That doesn't cover the entirety of the negative FCF - with other portions categorized as pertaining to "small and growing operating margins" - but it does make up a significant portion of the negative flow. Consolidated Q1 revenue and adjusted EPS of $2.64 billion and $0.40 compared with Baird's $2.62 billion and $0.36 estimates.

The video streaming firm reported revenue that was in line with consensus for the first quarter but missed estimates and even its guidance on subscribers.

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