Presently, Netflix, Inc.’s stock is being traded at a share price of $96.04 indicating a drop of 1.60% as of 12:300 PM EST. Since the start of the new year, the stock has plummet by as much as 15.34% and has managed to underperform the S&P 500 Index, since the Index witnessed a loss of 2.5% during the same time period. In a time span of over three months, the stock has managed to drop by 24% from its value.
By the end of the fourth quarter of fiscal year 2015, the total users of the streaming media giant in the United States were reported to be 80,000. The total memberships of the giant include the domestic streaming memberships, international streaming memberships as well as the domestic DVD segment. In comparison to the same quarter (Q4F14) last year, the revenue generated by the online streaming company rose by 25% as it posted revenue of $1.82 billion for the fourth quarter of fiscal year 2015.
The video streaming media organization’s bottom line performance remained rather dull as it posted earnings per share of $0.10 which indicated a drop of 48% from the same three month period during the previous year. However, it managed to Street’s consensus of the earnings per share was of $0.075 so the Netflix’s earnings for Q4FY15 managed to surpass their estimations.
Over 46 analysts have given a rating to the stock of the streaming media giant, of these analysts 24 have recommended that shareholders should take a long position while 18 have suggested a rating of Hold and finally the rest of the four financial analysts suggest that shorting the stock would be better for now. However, the analysts have given a consensus target price to the stock for the next 12 months of $123.74. This suggestion of the target price shows an upside potential of 29.4% in comparison to the stock’s current price.
- Michael C Morris, an analyst at Guggenheim Securities, maintain his bullish stance on the company stock has predicted that the target price might shoot up to $160 by the end of this year and has given a rating of Buy to Netflix stock. On the other hand, another analyst from Wedbush, Michael Pachter is bearish towards the stock and is expecting it to underperform the market and suggested a target price of $40 by the end of the year.
Furthermore, Netflix has practically destroyed the network and cable television viewership since the streaming media giant is working on original content, series and shows for its subscribers and are giving more options to its users in comparison to television networks.