On Tuesday, after market close, Netflix reported on its earnings for quarter four, 2020. It said that it is “very close” to becoming cash flow positive and could consider stock buybacks. The stocks soared by 12% after the announcement.
The report findings and analysts’ predictions are different. As per Refinitiv survey of analysts the EPS was estimated to be $1.39 but Netflix reported $1.19 and the revenue was forecast as $6.626 billion but the company reported a higher revenue of $6.64 billion. Street Account had said that there could be 6.47 million global paid net subscriber additions and the company announced that it has added 8.5 million paid subscribers.
Some of the highlights of the reports and statements from company executives are as follows:
Paid subscribers crossed the 200 million mark in the last quarter of the year
It is expected to become a free cash flow positive company soon
It would no longer require external financing for day-to-day operations
It would check out the option of returning cash to shareholders
Buybacks will not mean that the company will stop bold investments
It will pay its $15 billion debt with $8.2 cash on hand
It will improve the platform to compete with rivals including Disney+, Apple TV, Discovery+ and others
The company’s The Queen’s Gambit was watched by 62-million-member households in the first four weeks
George Clooney directed The Midnight Sky was Netflix’s biggest original film and was watched by 72-million-member households in the first 28 days
This content is being provided to you for informational purposes only. The content has been prepared by third parties not affiliated with CWEB Inc, a business. This content and any information contained therein, does not constitute a recommendation by CWEB to buy, sell or hold any security, financial product or instrument referenced in the content. This information neither is, nor should be construed as an offer, or a solicitation of an offer, to buy or sell securities by CWEB Inc. CWEB Inc. does not offer or provide any opinion regarding the nature, potential, value, suitability or profitability of any particular investment or investment strategy, and you shall be fully responsible for any investment decisions you make, and such decisions will be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance, and liquidity needs.
Unless stated otherwise, the web content provided by the CWEB family of companies is for educational purposes only. The information and tools provided neither are, nor should be construed, as an offer, or a solicitation of an offer, to buy or sell securities by CWEB Inc. or its affiliates. Unless stated otherwise, no information presented constitutes a recommendation by CWEB Inc. or its affiliates to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy.