This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Netflix Shares Are Smoking Hot Once Again

Stocks in this article: AAPL FB GOOG NFLX

By Xavier Brenner

One of the biggest market stories Tuesday had nothing to do with Apple’s (AAPL) quarterly earnings and dividend hike or the bizarre fake AP tweet that temporarily sent the stock market reeling. It was Netflix’s (NFLX) monster move up, further evidence that this DVD and movie-streaming service is back in a big way. Here are five wondrous facts about Netflix as its stands today:

1)  Share Price: Netflix stock shot up 24% today to $216.99 and is up 134% on the year, making it the best-performing stock in the Standard & Poor’s 500 Index this year. It’s also outperforming in percentage term tech blue chips such as Apple (AAPL), Google (GOOG) and Facebook (FB).

NFLX Chart

NFLX data by YCharts

2)  Subscribers: In its strong first quarter earnings results, Netflix noted that it has signed up 2 million new customers for its $8-a-month U.S. streaming service, the largest part of its business. Overall, subscribers in the U.S. hit 29.2 million members. If you throw in international customers in Canada and parts of Europe and Latin America, the grand total is 36 million. This infographic from Statista is an excellent overview.


3)  Overtaking HBO: With 29.2 million paying customers, Netflix now has more US subscribers than premium cable channel HBO (28.7 million), as of the end of the first quarter, according to SNL Kagan numbers. Globally, HBO still rules with 114 million subscribers compared with Netflix’s 36 million.

4)  Scale: During peak Internet usage periods, Netflix dominates North American fixed networks and uses no less than 33% of total bandwidth capacity, according to research firm Sandvine.

5)  Programming: Netflix received plenty of critical praise for the series " House of Cards," a political drama starring Kevin Spacey. Last December, Netflix and Walt Disney (DIS) unveiled a licensing agreement that will bring Disney movies to the online video streaming site starting in 2016. But profit margins on licensed content could prove difficult to sustain. As Felix Salmon wrote last year, “any time that Netflix builds up a profit margin, the studios will simply raise their prices until that margin disappears.”

Photo: HackingNetflix

The investments discussed are held in client accounts as of March 31, 2013. These investments may or may not be currently held in client accounts. The reader should not assume that any investments identified were or will be profitable or that any investment recommendations or investment decisions we make in the future will be profitable.


Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs