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 Runs out of Steam as CEO Hastings Warns of 'Euphoria'

Stocks in this article: NFLX

Oppenheimer analyst Jason Helfstein (Perform, $434 PT)

"We are raising our target on NFLX to $434, based on a bull-case scenario for 2018 subscribers. However, as this suggests only 12% appreciation based on after-hours trading, we are maintaining our Perform rating on valuation. After the close, NFLX posted another strong quarter and guidance, with US & International streaming subs up 24% & 113% y/y, respectively. US sub growth has been consistent since 4Q:12, while Int'l subs have only modestly slowed since the beginning of the year. Given our confidence in management's ability to control costs/margins, we are now valuing NFLX on 2018 US and Int'l streaming sub estimates of 54M and 59M, respectively, with EBITDA margins of 27%, a PE of 20x and 10% discount rate."

Jefferies analyst Brian Pitz (Underperform, $215 PT)

"With a modest beat and 4Q outlook above consensus, NFLX now trades at 110x our new '14 EPS. We find it difficult to justify this val'n given the risks of rising content costs, heavy competition, and the likelihood NFLX may need to raise add'l capital to fund operations. Our model gives NFLX plenty of credit for go-forward growth and margin expansion, our 4Q ests are above Street...yet we still see 45% downside to after hrs share price. Reiterate Underperform."

Cantor Fitzgerald analyst Youssef Squali (Hold, $350 PT)

"Netflix reported a quarter that was virtually in-line with expectations on the P&L but better on sub metrics, which bodes well for 4Q:13 and beyond. The model seems to be working beautifully, and we remain fans of its disruptive nature longer-term, given the service's expanding selection, improving personalization, low price and position as a key beneficiary of the rise of Internet TV. Strong momentum and a large short position (13% of float) are likely to move the stock higher short-term, in our view; that said, current valuation keeps us on the sidelines."

-- Written by Chris Ciaccia in New York

>Contact by Email.

2 of 2

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