Netflix Starting to Mature (NFLX)
October 6, 2008 by Douglas A. McIntyre
Trading in shares of Netflix Inc. (NASDAQ: NFLX) gave an interesting pre-market alert at Volume Spike this morning. The DVD rent-by-mail service is feeling pain early this morning after offering some very mixed guidance.
The company sees Q3 revenues of $343 to $348 million and Q4 revenues of$353 to $359 million. First Call had estimates of $345.8 million forQ3 and $364.8 million in Q4. On earnings its sees $0.26 to $0.34 EPSin Q3 and $0.30 to $0.38 EPS in Q4. Its Q3 estimates are $0.31 and Q4estimates are $0.32 EPS.
It also expects Q4 subscribers at 8.95 to 9.25 million by the end ofthe quarter. Last quarter it had 8.411 million subscribers and itpreviously said it was expecting a subscriber base of 9.1 million to9.7 million for the year-end.
This would have been an easy pick of companies which might face pressure from a slowing consumer who is looking for ways to trim down on steady expenses. But it may also be a sign that the major rapid growth model it has enjoyed may be starting to mature as well.
We have still seen thin volume with only 5,200 shares pre-market withits last trade down almost 10% at $26.15. Its 52-week trading range is$20.35 to $40.90.
Pre-market trading volume is more indicative of confusion rather thanconviction for a stock that trades almost 1.5 million shares per day.Where this one ultimately trades is anyone’s guess based upon the lackof investor trading this morning.
Jon C. Ogg
October 6, 2008
Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE
Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply
clicking here you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.