By:
On:
In: Around the web
Tagged:
With: 0 Comments

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

By:
On:
In: Around the web
Tagged:
With: 0 Comments

Buffalo Wild Wings’ [stckqut]BWLD[/stckqut] second quarter profits were down more than 9 percent and fell short of stock analysts’ estimates, as the restaurant chain coped with higher labor and chicken wing costs.

The Golden Valley-based company, known for its wings, beer and sports motif, posted second quarter net earnings of $21.5 million or $1.12 per share, down from $23.7 million or $1.25 a year ago.

Stock analysts polled by Thomson Reuters, on average, were expecting per share profits of $1.26.

Buffalo Wild Wings announced its earnings after the stock market closed Tuesday. On Wednesday, shares were up more than 13 percent in midday trading.Buffalo Wild Wings recorded sales of $426.4 million, up 16.5 percent over a year ago but short of the $429.3 million expected by analysts.

However, same-store sales, a key financial gauge, rose 4.2 percent over a year ago at stores owned by Buffalo Wild Wings and 2.5 percent at franchised stores — a better performance than analysts expected. Comparable sales take into account newly opened and closed stores.

Source: Buffalo Wild Wings shares soar despite 2Q miss – StarTribune.com

By:
On:
In: Around the web
Tagged: , , , , ,
With: 0 Comments

Just a few companies are driving the gains in major U.S. stock indexes this year, raising fresh concerns about the health of the market’s advance.

Six firms— Amazon.com Inc. [stckqut]AMZN[/stckqut], Google Inc. [stckqut]GOOG[/stckqut], Apple Inc. [stckqut]AAPL[/stckqut], Facebook Inc. [stckqut]FB[/stckqut], Netflix Inc. [stckqut]NFLX[/stckqut] and Gilead Sciences Inc.[stckqut]GILD[/stckqut] —now account for more than half of the $664 billion in value added this year to the Nasdaq Composite Index, according to data compiled by brokerage firm JonesTrading.

Amazon, Google, Apple, Facebook, Gilead and Walt Disney Co. [stckqut]DIS[/stckqut] account for more than all of the $199 billion in market-capitalization gains in the S&P 500.

The concentrated gains are spurring concerns that soft trading in much of the market could presage a pullback in the indexes. Many investors see echoes of prior market tops—including the 2007 peak and the late 1990s frenzy—when fewer and fewer stocks lifted the broader market. The S&P 500 is up 1% this year while the Nasdaq has gained 7.4%.

Source: The Only Six Stocks That Matter

By:
On:
In: Around the web
Tagged:
With: 0 Comments

After a series of blockbuster earnings that blew past even the most optimistic of Wall Street expectations, Apple Inc. [stckqut]AAPL[/stckqut] felt the pain of falling short of elevated expectations.

Apple said Tuesday its profit surged 38%, aided again by strong demand for the company’s latest iPhones and robust growth in China where sales more than doubled. The gains lifted Apple’s cash reserves to a record $203 billion.

But while Apple sold 35% more iPhones in the fiscal third quarter compared with a year earlier, those sales missed some analysts’ estimates. Apple also indicated its revenue in the current quarter could come in below Wall Street projections.

Source: Apple iPhone Sales, Up 35%, Disappoint

By:
On:
In: Around the web
Tagged:
With: 0 Comments

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