Netflix Inc. Stock Hold Recommendation Reiterated (NFLX)
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- Compared to its closing price of one year ago, NFLX's share price has jumped by 26.46%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- Despite its growing revenue, the company underperformed as compared with the industry average of 20.1%. Since the same quarter one year prior, revenues rose by 10.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The gross profit margin for NETFLIX INC is currently very high, coming in at 74.90%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 0.84% trails the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet & Catalog Retail industry. The net income has significantly decreased by 87.7% when compared to the same quarter one year ago, falling from $62.46 million to $7.68 million.
- Net operating cash flow has significantly decreased to $0.15 million or 99.69% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
--Written by a member of TheStreet Ratings Staff. HOLIDAY SPECIAL: Let Jim Cramer show you every trade he is making in his $2.5 Million portfolio. Join now for 14-days FREE. Sign up today to get e-mail alerts before every trade
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