Summary of Survey Results According to a Perspectec survey of 1,000 online respondents in late July, Netflix’s has penetrated 28% of the Japanese market and 27% of the German market. In both countries the percentage of subscribers who have left Netflix over the past year is just over 50%. The most common reasons why subscribers left Netflix was due to price and a lack of content. Why do Churn and Penetration Matter Now? For those following Netflix (NFLX-NASDAQ), it is increasingly apparent that 2017 will be the most telling year in determining whether the company’s International strategy is headed for success or failure. Success […]
Ayesha Kapoor
19 posts
Nice beat – Netflix is up 13% since reporting Q2 results and its Q3 outlook Monday night. The price is up primarily due to reporting net subscriber additions that were materially higher than their guidance. Traditional Financial metrics were inline – The income statement was generally inline with our estimates and market consensus. Q2 Sales were $2.79 billion (beat our estimates by less than 1%, but was up 32% Y/Y), operating margin was 4.6% (vs. 3.3% last year and 9.7% last quarter due in large part to the shift of House of Card’s costs to Q2). Diluted EPS of $0.15 was inline with estimates. Free […]
We decided to look at some momentum and technical factors between Netflix and salesforce.com. We decided on the following indicators to evaluate it due to their prevalence in the markets: Relative stock price performance over the past 12 months 50-Day and 200-Day Moving Averages Moving Average Convergence/Divergence (MACD) Stochastic Oscillator We believe these technicals are relevant until Q2 results are reported on July 17th. This report will be updated in the weeks following the Q2 earnings release. Recall our relative stock call remains that Netflix (NFLX-NASDAQ) will appreciate until July 2018. We believe if investors want to sell shares to […]
This is the first in an ongoing series of research pieces examining Netflix’s (NFLX-NASDAQ) business and share price. Unlike their programming, there will be no end date to our research unless the company is acquired. We view Netflix revenue and content costs similar to the way the company does, taking into account U.S. and International churn, customer lifetime value and customer acquisition costs. In order to help answer some key questions, we surveyed over 600 hundred people in the U.S. and Mexico, with a goal of helping to answer questions we had surrounding market penetration, pricing, content, competition and subscriber […]