Netflix Inc. (Page 4)

Netflix Inc. said it plans to shut down the last of its data centers by the end of the summer, which will make it one of the first big companies to run all of its information technology remotely, in what’s known as the public cloud.

“For our streaming business, we have been 100% cloud-based for customer facing systems for some time now, and are planning to completely retire our data centers later this summer,” the company said in an email to CIO Journal.

Corporate use of the public cloud, in which users share the resources of a service provider, is rising. But many companies still run sensitive software in their data centers or in private clouds, in which a company has dedicated cloud resources from a third-party or within its own premises. Many companies weave all of these assets together in what is known as a hybrid arrangement. While some smaller companies and startups are known to rely entirely on the public cloud, few large corporations do.

Source: Netflix to Pull Plug on Final Data Center – The CIO Report – WSJ

It has taken less than two decades for Netflix Inc. [stckqut]NFLX[/stckqut] to transform how people watch TV and movies. That’s how much time has elapsed since co-founder and Chief Executive Reed Hastings, irked by a $40 late fee at a video store in 1997, came up with the idea for the service.

Today, binge watching video is so common that viewers expect to be able to start and finish full TV series in a weekend. Netflix has led a dramatic shift that has overturned the cable-TV business and pushed media companies to offer stand-alone services at affordable prices.

Netflix NFLX, +1.92% is now looking to challenge some of the most creative minds in the business, in its quest to become the gold standard of content while continuing to lead in streaming technology.
“When you look at studios like Pixar, that combine great story telling and the great technological aspects, that’s where we want to be,” Hastings told MarketWatch.

Achieving that goal means spending billions of dollars to produce content and extend the service to all corners of the globe. Yet Netflix’s revenue still relies on a $7.99-a-month base fee. Profit tumbled 63% in its latest quarter as it spent more on content and expansion in foreign markets, and its negative free cash flow widened. The company’s unwavering opposition to advertisements and its apparent lack of interest in cracking down on account sharing raise serious questions about whether it can continue with the same model while working to achieve such audacious goals.

Source: Netflix CEO wants to take over the world – MarketWatch

Cramer was mesmerized when he heard the Netflix [stckqut]NFLX[/stckqut] conference call. The stock rallied 18% after the quarter and is up 137% for the year on the split adjusted basis. Cramer discussed what he learned from the conference call and where he thinks the company is headed.

Netflix is way too big for just a $43B market cap. The company has original content that is being built into almost all the TV streaming services in the world. The company has a solid grip on internet and technology. Secondly, the total addressable market for the company is more than 400M subscribers. Customers get unlimited movies and shows at a bargain price. Almost everyone can afford it. Thirdly, the original content is brilliant and is putting the customer first instead of being dictated by advertisers. Lastly, the management is not under promising and over delivering on purpose, they instead do not know how good they are. The company keeps giving what customers want and the subscribers are increasing as always.

“Stop saying ‘Holy smokes, Netflix is now bigger than X or Y or Z television or entertainment company.’ Get used to it. It should be,” said Cramer. He thinks that it will take a big effort to screw up this wonderful company. He thinks that $150 is a realistic target for this stock.

Source: Netflix Is Still Undervalued – Cramer’s Mad Money (7/16/15) | Seeking Alpha