It was just back in October that many thought Netflix subscriber growth was at a standstill and that there could be a massive wall holding the company from hitting new levels. Yesterday Netflix reported it's forth QUarter results for the 2014 year. Subscriber forecasts were not what were expected however adding 1.9 million domestic customers and over 2.4 million oversea customers. With this being said that is just over 8% higher guidance than was originally thought back in October. Total sales killed it with a 27% year over year increase to $ 1.4 Billion with a B. Bottom line reported earnings at around $0.72 per diluted share. However the big news that spiked shares over 17% on the day were not the numbers. Netflix's own management expects to complete its major global expansion in two years. How huge is this? Well this about it there intending on offering there streaming services in nearly 200 plus contries by the end of 2016, a significant increase from today's 50.
Since I have been a subscriber now of Netflix's for 2 plus years, I am still a firm believer in that this company is on the brink of fully assisting in the collapse of the cable providers. Not only do I foresee this company someday having 300 Million plus subscribers I see this company breaking new barriers for a subscription style business model. The future looks vary bright for this young company.
What are your feelings ?
Do you currently use Netflix and if not Why Not.?
Currently shares are trading hands for just over $409.00 per diluted share. Over the past 52 weeks shares have traded hands for as low as $299.50 and as high as $489.29. With just over 60 M shares outstanding to the public this is a small cap investment that should be put on your Watch Lists. Is a new 52 week high coming ?