Nisa Investment Advisors, LLC now owns 145,475 shares worth $22,024,000. In afternoon trading, Netflix was up 18.7%, near 183.90.
The guidance assumes much of the second quarter's momentum will continue, the letter said, though it added that Netflix's forecasts had been too optimistic at times. The company had revenue of $2.64 billion during the quarter, compared to analysts' expectations of $2.64 billion.
Netflix recorded more foreign subscribers than in the United States for the first time in June end. It added 5.2 million users in total, far more than the 3.2 million it had projected, and Wall Street's estimate of 3.5 million net additions. For Netflix, their rising revenue and subscriber numbers is a sign that investing in original programming is paying off.
The Los Gatos, California-based company has spent heavily on original shows to attract new subscribers, finding success with hit shows such as "House of Cards".
But David Butler at Seeking Alpha says despite "Netflix's awesome quarter", there are still some questions that need to be asked, such as when will the company show better cash flow statements?
"We are making good progress with our global expansion as improving profitability in our earlier worldwide markets helps fund significant investment in our newer territories", Netflix said in a letter sent to its shareholders. The stock now has an average rating of "Buy" and an average target price of $169.38. "The irony is the faster that we grow-and the faster we grow the [Netflix-] owned originals-the more drawn on free cash flow that will be", Hastings said during the call. "At some point, the restaurant's owners (and lenders) will start asking about a path to generating cash flow on that investment". No other company came close to Netflix's performance, but gains also came from Nvidia, Alphabet, Facebook and TiVo.
"All throughout the West, in Latin America, North America and Europe, we're doing very well", CEO Reed Hastings said on a webcast.
Ted Sarandos is Netflix's Chief Content Officer with US$6 billion, yes billion, to spend this year. Don't be surprised if show cancellations increase going forward, given Netflix's above-average 93% renewal rate of original programming.
Vanguard Group Inc. now owns 27,161,082 shares of the Internet television network's stock valued at $4,014,680,000 after buying an additional 921,283 shares during the period.
The party is in full swing for Netflix investors. Now it aims to shake up the movie business with big films that premiere first on its streaming service.
In a letter sent out to investors, Netflix wrote about its latest accomplishments."The volume and breadth of our releases in Q2 exemplify our commitment to serve the desires of our diverse and growing audience".
Speaking of original content, Netflix isn't aiming to only take on the cable industry.
Netflix has no shortage of competitors.
Company leaders said new content creation was critical to competing against other online rivals such as Amazon and YouTube, as well as traditional television. The company completed a $1.4-billion bond offering in April.