|Bid||550.00 x 1000|
|Ask||550.50 x 800|
|Day's range||511.28 - 555.88|
|52-week range||252.28 - 555.88|
|Beta (5Y monthly)||0.96|
|PE ratio (TTM)||111.06|
|Earnings date||16 Jul 2020|
|Forward dividend & yield||N/A (N/A)|
|1y target est||463.15|
Market participants are bracing for the start of what will likely be the weakest corporate earnings season since the global financial crisis, as the coronavirus pandemic and measures to contain it hit business activity especially hard in the second quarter.
At a conference in 2015, Netflix (NASDAQ: NFLX) CEO Reed Hastings famously predicted, "We will come to see that linear TV declines every year for the next 20 years and that internet TV rises every year for the next 20 years." Viewing hours on streaming services like Netflix and Roku (NASDAQ: ROKU) have boomed during the pandemic as consumers have been stuck at home. At the same time, linear TV and movie theaters are reeling from COVID-19.
This week, Netflix (NASDAQ: NFLX) will help kick off earnings season. The streaming media company is slated to report its second-quarter results on Thursday, making it one of the first megacap stocks to report earnings for the second calendar quarter of 2020. Given a combination of strong price appreciation for the stock and uncertainty surrounding how lockdowns impacted Netflix during the quarter, the stock could move big in either direction following its upcoming Q2 report as investors digest new information from the company.
(Bloomberg Opinion) -- Brazilians take their melodramas seriously. So when penniless Eliza, the star of “Totalmente Demais”(Total Dreamer), a soap opera spinoff of Pygmalion, runs off to the big city in search of a job and a new life, this nation of couch warriors drew battle lines.Would Eliza — a tropical Eliza Doolittle — end up with humble Jonatas, a hardscabble street vendor who falls hard for the ingenue and helps rescue her from the perils of the urban fleshpot? Or better she surrender to Arthur, the slick fashion impresario who whisked her onto the catwalk with whispers of fame and fortune? Last month as the on-screen rivalry grew fierce, so did the social media frenzy over which pair — “Joliza” or “Arliza” — to ship.Never mind that everyone already knew the denouement. (She chooses Jonatas.) Totalmente Demais debuted five years ago. Its revival owes not to popular demand but the coronavirus, which has forced producers everywhere to shut down studios, stages and stadiums. Totalmente Demais is just one on a long playlist of reruns that signature Brazilian network TV Globo is counting on to keep the house-bound nation in swoons and tears. Will reheated soaps still juice Latin America’s most demanding living rooms?Hold the hydroxychloroquine. “The show is more popular now than when it originally aired,” Mauricio Stycer, a television critic for the website UOL told me. But this is where the story line for TV Globo, and culture providers everywhere, gets murky. So intense was the partisan engagement over Eliza’s fate, scores of discontents demanded a new ending, with Eliza going for Arthur. The author demurred; there simply was no way to reshoot the finale in mid-pandemic. The message to the entertainment moguls was hard to miss. Yesterday’s favorites may keep screens aglow while families are stuck indoors, but the thrill of the old will fade. Yes, newscasts have plugged part of the programming gap, but viewers cannot live on grim headlines alone. The problem is especially dramatic for TV Globo, the national market leader, which was forced to put 14 primetime soaps and dramatic series on ice as it pored over how to reboot the nation’s most cherished industry. Over the years, seasoned director and writer Ricardo Linhares has seen actors fall ill and suffer heart attacks, with one dying in mid-production. “But we’ve never faced a moment like this when the whole industry comes to a hard stop,” he told me. This is not just any industry. What keeps Brazilians stoked and talking through good times and bad are its teledramas. (Not for nothing did President Jair Bolsonaro briefly cast veteran soap star Regina Duarte as his culture secretary, though she bombed in the role after just 77 days.) The novela has already suffered setbacks, mainly from on-demand providers like Netflix and Amazon Prime. But streaming services are still too pricey for Brazil’s majority of modest and lower income households, whose go-to pastime is still the broadcast sagas. While the main networks, which are not publicly traded, don’t publish their revenue flows, it’s no secret that novelas are the meal ticket. Before coronavirus, market leader Globo aired four separate homemade telenovelas six days a week during prime viewing hours.So how to convincingly shoot guy gets girl, or girl gets girl, and still safeguard cast, crew and socially responsible messaging?Cautionary tales abound. The host of a popular family variety show at SBT, another big network, recently tested positive a few weeks after the station jump-started tapings in April, and all her crew is under observation. The network has since suspended new shoots. A number of other screen and stage celebrities have also fallen ill. Globo has rolled out elaborate health protocols for a restart, the date for which is under review. Actors, directors and stage hands will be expected to submit regularly to tests for Covid-19, with temperature checks before every recording. Infectious disease specialists will be on call and even on set. The typically multitudinous cast and crews are to be winnowed, especially child actors, and everyone on set must keep at least 2 meters apart. “A typical novela involves around 400 people, with 120 on the set at any time. We’re going to reduce to 15 or so,” said Jose Villamarim, a director. Such safeguards could add as much as 30% to production costs, according to one report.Globo has left whether to incorporate the virus into their scripts to its screenwriters and directors. The creators of one interrupted novela, “Amor de Mãe,” which revolves around a mother’s search for a son stolen from her at birth, have decided to meet the challenge by bringing coronavirus into the plot. The rewrite will include scenes of empty streets, characters in masks, families in lockdown and a character who falls ill. The broader aesthetic challenge may be more vexing. How to tell stories in a cherished genre which turns on intimacy, passion and collective bliss? “The whole novela hinges on waiting for that kiss or for the villain to get a beating,” Nelson Motta, a Brazilian cultural producer said. Forget the crowded family breakfast table and those big fat Brazilian weddings, two cherished novela tropes. “Until they find a way to disinfect everyone and everything, all that’s history,” Motta said.Fortunately, the pandemic has also stimulated innovation. “The Confinement Diaries” is a comedy series created by a homebound Globo comic actor and his art director wife, who riff on the frustrations and follies of life in lockdown. Yet these are opportunistic solutions with an understandably limited shelf life. It’s too soon to know what post-pandemic teledrama will look like. In 55 years of soap-making, Globo faced a shutdown only once, in 1975, when the military dictatorship censored a novela it found seditious. Nevertheless, the producers quickly scrambled to replace that drama and then elude the censors until democracy returned, but the show went on. With the virus still at large, all bets are off. “No one is talking about a new normal yet,” said Villamarim. Some see computers as salvation. Animated filmmaking, where most of the talent is digital and voices studio dubbed, is on a roll, as are post-production computer graphic artists. One possible workaround: a transparent pane of glass or plastic to separate heartthrobs in intimate scenes, which can be digitally erased by studio wizards. “I’m thinking of patenting this one,” said Villamarim. Call them soap shields. But it will take more than digital tricks to keep this nation of televoyeurs on the couch. “Otherwise, the only winners will be French cinema, where it’s all blah, blah, blah and nothing happens,” said Motta. Like everyone else, soap aficionados are pulling for a vaccine.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Mac Margolis is a Bloomberg Opinion columnist covering Latin and South America. He was a reporter for Newsweek and is the author of “The Last New World: The Conquest of the Amazon Frontier.”For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
With so many people staying home during the COVID-19 pandemic and needing to entertain themselves, Netflix (NASDAQ: NFLX) has emerged as an inadvertent beneficiary of the public health crisis. Goldman Sachs released a bullish note on Friday, reiterating a conviction buy rating on the stock. The analyst believes that Netflix enjoyed record quarterly app downloads in the second quarter, with year-over-year growth in downloads hitting the highest levels since early 2016.
‘Hamilton’ is continuing to soar following its Disney+ debut with 80% of users tuning in to watch the Broadway phenomenon, according to research complied by 7Park Data.
Three of the most beaten-down groups of stocks led today's big day higher for stocks, as investors react to positive news about a potential treatment for COVID-19.
Netflix (NASDAQ: NFLX) shares were flying higher today after investors woke up to a full-throated endorsement from Goldman Sachs. Analyst Heath Terry raised his price target on the stock from $540 to $670, and once again said it was on his Conviction Buy list. With second-quarter earnings on tap next Thursday, Netflix shares have been rallying into record territory as analysts weigh in with mostly bullish calls ahead of the report.
The Nasdaq is like "a train that is moving faster than any train we've ever seen before,” says one veteran strategist.
In this episode of the Motley Fool Answers podcast, hosts Alison Southwick and Robert Brokamp reveal three lessons related to the unveiling of The Motley Fool's new logo, including one from the best-performing stock of the past 25 years. To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks.
Netflix (NASDAQ: NFLX) may be playing it conservative by estimating it will add only 7.5 million new subscribers in the second quarter, less than half the number that signed up in the first, but Wall Street isn't buying it. Goldman Sachs (NYSE: GS) analyst Heath Terry says app downloads hit a record during the period as the streaming giant continued to add new content. The analyst also believes that analysts' consensus estimates for Netflix's earnings in the back half of 2020 and beyond are too low, so he's raised his price target on the streaming service provider to $670 a share, or 32% above where the stock closed Thursday.
The stock market has been resilient even in the face of ongoing uncertainty about the future of the economy, and Friday morning was no exception. Subscriptions could rise by 12.5 million or more during the quarter.
Investor enthusiasm is hitting a higher gear for Netflix (NASDAQ: NFLX) ahead of the streaming video giant's second-quarter earnings report on July 16. Shares pushed further beyond $500 on Friday after Goldman Sachs boosted its short-term price target to $670 per share to mark the highest such forecast from a Wall Street firm covering the stock.
Some stocks have risen when the markets have faltered, and some of these business models are getting even stronger in the new normal.
Here are two stocks that might do just that: Exelixis (NASDAQ: EXEL) and Netflix (NASDAQ: NFLX). Its revenue largely depends on just one product: Cabometyx, a tyrosine kinase inhibitor (TKI) that specifically targets cancer cells. This cancer drug is approved for the treatment of renal cell carcinoma (RCC), a type of kidney cancer, and hepatocellular carcinoma (HCC), a form of liver cancer.
Surging tech stocks are hiding the opportunity in some beaten-down names, says Fundstrat's Tom Lee.
(Bloomberg) -- Sony Corp. invested $250 million in Epic Games Inc., owner of the popular video game Fortnite and the widely used Unreal Engine for game development.The PlayStation maker and Fortnite proprietor didn’t disclose the new value of the games company. Bloomberg News first reported last month that Epic was close to securing funding at a valuation of about $17 billion.The Unreal Engine is used to create many popular game franchises, such as Borderlands and Gears of War, along with Epic’s own Fortnite. The fifth iteration, Unreal Engine 5, made its debut this summer and was demonstrated on PlayStation 5 hardware, signaling the close collaboration between Epic and Sony.Sony is preparing for the introduction later this year of the PlayStation 5, its first major game console release since 2013. Epic is primarily focused on games, but Tim Sweeney, its chief executive officer, said in a statement Thursday that he shares a vision with Sony of a “convergence of gaming, film and music.”Sony’s shares were up as much as 3.2% in Tokyo on Friday, approaching a 19-year high for the company.“Tim Sweeney has a track record of being able to sense which way the wind is blowing in gaming and he is tipping his hand that it’s blowing Sony’s way,” according to Mio Kato, an analyst at LightStream Research. The Unreal Engine is also used in the making of the Netflix Inc. series “The Mandalorian,” so it “blends nicely” with Sony’s interests in TV and movie production as well as gaming, Kato wrote in a note on Smartkarma.Fortnite has been an influential force in games and culture over the last few years. The game had more than 350 million players as of April, benefiting from the influx of people spending more time at home during the coronavirus pandemic. Quarantine has also been a boon for Houseparty, another Epic property, which allows people to chat over video and play games with their friends. Some 50 million users signed up to use the app in March and April.Read more: Fortnite, Rappers and the Billion-Dollar Pandemic Gaming Boom(Updates with Sony share price and Unreal Engine details from third paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- South Korean e-commerce giant Coupang Corp. is buying the software of Hooq Digital Ltd., the Southeast Asian video streaming service owned by Singtel, Sony and Warner Bros that’s filed for liquidation, according to people familiar with the deal.Coupang has already struck a deal to acquire the assets, the people said, asking not to be named because the information hasn’t been announced.The deal ushers SoftBank-backed Coupang into a competitive but fragmented video streaming arena and pits it against the likes of Amazon.com Inc. and Netflix Inc. U.S. giants have emerged as frontrunners, squeezing out a number of domestic players with splashier local programming and fuller Hollywood slates. In a sign of accelerating consolidation, Tencent Holdings Ltd. recently agreed to buy the assets of Malaysian streaming platform iFlix Ltd. And last month, ride-hailing giant Gojek won funding from Golden Gate Ventures and other backers for its own video foray.Coupang, backed also by BlackRock Inc. and Sequoia Capital, has designs too on its own home market. Korea in recent years birthed blockbusters that captivated global audiences from “Parasite” to “Train to Busan,” yet Netflix and Alphabet Inc.’s Youtube remain dominant local players. South Korea’s government announced a plan last month to nurture five homegrown over-the-top or streaming service providers into global companies, and support their growth by expediting deals and investment in content.A Coupang representative declined to comment.Read more: Tencent Buys Assets of Struggling Streaming Platform IFlixHooq, a joint venture between Singapore Telecommunications Ltd., Sony Pictures Television Inc. and Warner Bros Entertainment Inc., filed for liquidation in March and discontinued service at the end of April. Set up in 2015, it offered movies and drama series across Singapore, the Philippines, Thailand, Indonesia and India, but ran into trouble during the pandemic.Coupang, widely regarded as South Korea’s Amazon, has been aggressively expanding into new businesses such as food delivery and digital payments, mirroring the U.S. giant by broadening its services. The Seoul-based company, founded in 2010 by Chief Executive Officer Bom Kim, was said to be valued at $9 billion in late 2018 and has been eyeing a public listing as early as next year, Bloomberg News reported in January.Buoyed by the growth in subscribers to its delivery service, sales at the startup rose to a record 7.15 trillion won ($5.9 billion) in 2019.Read more: Coupang Grew Revenue 64% in Boost For SoftBank’s Startup Cred(Updates with details on Asian market from the third paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Some of Wall Street’s biggest stocks are coming off their best quarterly performance in years, and with the broader economy still grappling with the pandemic, analysts are starting to express some skepticism about high-profile rallies.The S&P 500 surged 20% in the second quarter, its biggest quarterly gain since 1998. While the superlative nature of the rally was partly a function of timing -- many components hit a bottom right before the end of the first quarter -- the move was fueled by tech and internet stocks, which outperformed the benchmark and have heavy weightings due to their massive market capitalizations.Apple and Amazon.com both gained more than 40% during the quarter, making it the iPhone maker’s best quarter since 2012 and Amazon’s best since 2010.On Wednesday, Deutsche Bank confessed it was “surprised at both the speed and magnitude of the rebound” in Apple shares, adding that the move “has us nervous.” Raymond James echoed this tone on Tuesday, seeing uncertainty surrounding Apple’s forecast given an expected delay in the iPhone 12, a product Nomura Instinet expects “will fall short of a supercycle.” Both Deutsche Bank and Raymond James still recommend buying Apple shares.Amazon remains a consensus favorite on Wall Street -- more than 90% of the firms tracked by Bloomberg recommend buying it -- but the degree to which the share price exceeds analysts’ average price target is near a multiyear high, suggesting that even bulls aren’t expecting much additional upside.Among other mega-cap names, Microsoft rose 29% over the second quarter, its best such showing since 2009. Both Facebook and Google-parent Alphabet notched their biggest quarterly gain since 2013, with Facebook up 36% and Alphabet up 22%, based on its Class A shares. Netflix rose 21% last quarter.All are at or near record levels, and the rallies will soon be tested as each member of the group is scheduled to post quarterly results before the end of the month, with Netflix reporting next week.Apple EstimatesFor Apple, the rally has come despite a more tepid view for its upcoming results. Wall Street expects third-quarter earnings, excluding some items, of $2.03 a share, a consensus that is down 6.8% from where it was three months ago. The consensus for revenue has declined 0.9% over the same period.While analysts debate whether the results will justify the recent gains, many of these names are seen as potential pandemic winners. Microsoft is expected to see stronger demand for its cloud-computing and workplace collaboration products as people continue to work remotely, while the e-commerce wave lifting Amazon and others is seen as outlasting the coronavirus’s impact on brick-and-mortar stores.Apple analysts also see a number of reasons to be optimistic for the long term, including the company’s services business, wearable products, and its stock-buyback program. “Overall, we believe the directionality and reasoning behind AAPL’s stock rise,” Deutsche Bank’s Jeriel Ong wrote. Still, the firm has “ambivalence at these levels.”Firms expressed a similar sentiment about Netflix, which has seen higher engagement during the pandemic. Rosenblatt Securities “struggle[s] to see the upside” from current levels given “uncertainty over how [long] this favorable environment will last.” Stifel continues “to grapple with the risk/reward profile given limited 2H visibility.”Imperial Capital downgraded the stock earlier this week, moving away from an outperform rating that it had held since starting coverage on Netflix about two years ago, according to data compiled by Bloomberg. Following the recent advance, Netflix “will begin a fairly extensive range-bound trend as other long opportunities emerge in the media space,” the firm said.(Removes reference to Microsoft reporting next week in seventh paragraph of story originally published July 8.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Stocks abruptly turned negative Thursday as fears over the economic outlook following an increase in coronavirus cases resurged. The Dow and S&P 500 wiped out their week to date gains.
Netflix (NASDAQ: NFLX) is set to report second-quarter earnings on July 16, and the news could lift the streaming platform's per-share price even further past the all-time high it just hit above $500. Also, churn plays a role in Netflix's net additions, and defections have likely fallen during the crisis as there are few other entertainment outlets available.
Netflix (NFLX) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.