This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Stream Yourself Some Cash, Invest in Netflix

NEW YORK ( TheStreet) -- For all the criticism that Netflix (NFLX - Get Report) has taken, the company deserves plenty of credit for having turned things around.

Granted, Netflix shares are still far from the $300 level they reached in 2011. But I'm kicking myself for having missed the bottom at $52. And after watching the first few episodes of its original series House of Cards, this weekend, there are signs that more gains are on the way.

Popular bear arguments against Netflix include its rising costs and the company's ill-timed price hike, which alienated subscribers and led to 1 million customer cancellations in the quarter following the hike. This allowed Amazon's (AMZN) Prime streaming service to gain notoriety.

More recently, however, a new Netflix has emerged. It has been one good decision after another, and these decisions have been bearing fruit as the company's fourth-quarter earnings report attests.

Ahead of the report, the Street was expecting a loss of 13 cents on $935 million in revenue.

But Netflix stunned investors by reporting a profit of 13 cents a share on revenue of $945 million. In the year-earlier quarter, the company reported EPS of 64 cents.

As impressive as this was, the most noteworthy aspect was the company's incredible cost management, including a 12% decline in general administrative expenses.

Marketing expenses grew slightly, by 2.7%, and technology costs were up 1.7%. As noted, expenses have been a huge point of contention for bears, especially because profits dropped 90% in the third quarter due to heavy international expansion.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
NFLX $89.37 -1.60%
AAPL $93.21 -0.44%
FB $117.80 -0.22%
GOOG $701.26 0.80%
TSLA $211.34 -5.00%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.60 -0.52 -0.03%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs