James Hughes, Chief Market Commentator for eToro took a look at Netflix’s prospects ahead, with earnings out today.
Netflix (NASDAQ:NFLX) pushes higher despite Ichan exit
Prices have flown ahead over recent months, despite the recent announcement by legendary investor Carl Ichan that he was exiting the stock, and Hughes is fully expecting Netflix to miss earnings today quite substantially. However, he is expecting the good story to continue as the company is investing in content and expansion.
Global expansion keeps investors happy
Hughes adds that Netflix will soon be in 200 countries by the end of the year including India and China, and that is one of the reasons for missing earnings this year but also keeping investors happy. Hughes is expecting strong after hours trading on the stock.
Intellectual property is a long term game changer for Netflix
The other area of growth is the original content that Netflix is producing. This is a real growth engine that is only just being realised by the company.
Mike Ingram, Market Commentator at BGC Partners likened the situation to the spat between Taylor Swift and Apple (NASDAQ:AAPL) recently, where the ownership of content came into question, adding that Netflix now have developed a platform and now are owning the intellectual property of the content they show too. He added that alongside the earnings miss, he is expecting a pretty punch forward guidance note to be delivered to investors in order to keep momentum going.