Tags: netflix | ubs | stock price | subscribers

UBS: Netflix Shares to Spike 20 Percent as International Subscribers Top Expectations

Image: UBS: Netflix Shares to Spike 20 Percent as International Subscribers Top Expectations
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By    |   Monday, 06 Mar 2017 02:32 PM

Netflix Inc. stock, already flying high, reportedly is poised to continue soaring to new records.

"Investors should buy Netflix shares because the company's international subscriber additions this year will come in above current expectations," CNBC.com cited UBS as saying.

UBS upgraded the streaming video company to buy from neutral.

"Netflix is certainly well-liked and not inexpensive, but we do see the potential for Netflix to exceed Street subscriber growth expectations and believe that concerns regarding competition and content costs are misplaced," analyst Doug Mitchelson wrote in a note to clients, CNBC reported. 

"We expect Netflix's original content ramp to continue to drive accelerating international net additions, especially as [Netflix] increases investment in local content overseas and adds more movies and nonfiction genre content."

Netflix shares were recently at about $142 and are up 12 percent year to date through Friday. The stock has soared nearly 40 percent in the past six months. 

Netflix signed up a record 7.05 million new customers in the fourth quarter, topping analysts’ estimates for domestic and international growth to cap the company’s first year as a global online TV service, Bloomberg reported.

The company added 5.12 million new customers in international markets, beating analysts’ estimates of 3.78 million. Los Gatos, California-based Netflix also signed 1.93 million new domestic customers, exceeding projections of 1.38 million. The shares jumped in late trading.

The popularity of the period drama “The Crown,” about a young Queen Elizabeth II, and new seasons of “Gilmore Girls” and “Black Mirror” helped Netflix lift its total online customer base to almost 94 million. Since expanding to 130 new countries last January, Netflix has delivered strong international gains and could see foreign subscribers exceed its U.S. base this year.

The company, the world’s largest paid video service, bet its future on globally replicating its success in the U.S., where it has almost 50 million customers, sacrificing near-term profit while spending heavily on programming and marketing to build a global TV audience.

While Netflix has signed up almost half of the available market at home, it hasn’t reached that percentage of broadband households in even its strongest foreign territories, such as the U.K. and Canada.

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Netflix stock, already flying high, reportedly is poised to continue soaring to new records.
netflix, ubs, stock price, subscribers
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2017-32-06
Monday, 06 Mar 2017 02:32 PM
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