Netflix Shines Some Nice Numbers
Netflix(NFLX) Q1 EPS $0.60 vs. $0.76 Consensus; Q4 adj. EPS was $0.72 vs. $0.44 Consensus. Revs $1.49 bln vs $1.49 bln Capital IQ Consensus.
Some Remarks:
It is clear that the stock rallied to $400 after hour
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From my technical analysis, $410 will be a strong resistance. It seems like people love tech stocks to be this high right now. If it breaks 410, it is very likely we will see a $450 home run soon.
Some Analysts’ Updates:
- Stifel raises target price to $500 from $380; rating buy
- BMO raises price target to $400 from $375; rating market perform
- JP Morgan raises target price to $511 from $450; rating overweight
- Evercore ISI raises target price to $450 from $430; rating hold
- Pacific Crest raises target price to $500 from $490; outperform
Possible Concerns:
Netflix expects to raise ‘at least’ $1 bln in debt. In its letters to shareholders, it says:
“We finished the quarter with $1.6 billion in cash and equivalents. Given we are investing faster in content (this Q1 will show a step up in cash use with all the original projects launching in the quarter) and the current favorable interest rate environment, we intend to raise at least a billion dollars, pending market conditions, of additional long-term debt in a similar manner to last year”.
To read its letter, from here.
