Netflix says it's competing with 'sleep' not Amazon or Hulu

Netflix is guiding for a lower second quarter, with 3.20 million net streaming adds, including 0.60 million in the United States and 2.60 million internationally.

Netflix has expanded around the world over the last few years, betting that its US formula would pay off in other countries.

Netflix stock was down roughly 4% in the immediate aftermath of the earnings announcement, but rebounded and was up 1.4% in after hours trading on Monday. Notably, Netflix moved the release of season 5 of "House of Cards" to the second quarter, instead of the usual first quarter release. The company reiterated that it expects to burn $2 billion of cash in 2017 and stated "we anticipate negative FCF to accompany our rapid growth for many years".

In a letter to shareholders, Netflix said that in regards to its Q1 performance, though it missed relative to guidance, "There were no substantial variations from our January guidance forecast". CENTRAL TRUST Co raised its position in Netflix by 408.4% in the first quarter. This coming weekend, it is about to have even more reasons to celebrate as it expects to hit the 100 million subscriber mark.

Earlier this month, Amazon and the National Football League announced that the e-commerce giant had obtained the exclusive live streaming rights - for a reported $50 million - to broadcast 10 Thursday night football games through its Prime Video service. Netflix guided to Q2 USA and global net additions of 600,000 and 2.6 million, respectively, both above previous expectations, driven in part by an anticipated stronger content line-up, including new seasons of House of Cards, Orange Is the New Black, and the just launched 13 Reasons Why. This wasn't far from analyst expectations, who were projecting $2.64 billion in revenue and $0.37 earnings per share.

With almost 100 million subscribers, Netflix assumes lead in the on-demand streaming space.

Pachter along with the other analyst are thinking for how much time Netflix will be able to hold the line on price as movie and TV studios typically demand more money as more people subscribe to channels.

More notably, though, Netflix revealed that it's close to clearing two major bars. That's still almost double the $0.09 per share Netflix reported in the second quarter of 2016.

Netflix's marketing budget has almost doubled over the past few years from $607,186 in 2014 to a forecast of more than $1 billion this year. "Starting this year, we can be primarily measured by revenue growth and (global) operating margins as our primary metrics".

  • Salvatore Jensen