NEW YORK (TheStreet) -- Shares of Netflix (NFLX) - Get Report are down by 0.78% to $102.24 in late-morning trading on Tuesday, reversing an earlier pop, despite the company releasing strong viewing numbers from its first theater-ready film, Beasts of No Nation.
After two weekends the film has over 3 million views in North America alone, Content Chief Ted Sarandos told movie industry publication DeadlineHollywood.
"Beasts Of No Nation was the most watched movie on Netflix, in every country we operate in. Even Japan, and I'm only calling out Japan because most specialty films don't do very much of their box office outside the U.S. at all, let alone in Japan," Sarandos said.
The film, which stars Idris Elba as an African warlord who trains a young orphan to join his group of guerrilla soldiers, has received a positive response from critics.
IMDB gave the film an 8/10 rating, while critic aggregation site Rotten Tomatoes currently has a 90% score on the film.
Separately, TheStreet Ratings team rates NETFLIX INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
We rate NETFLIX INC (NFLX) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, robust revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to its closing price of one year ago, NFLX's share price has jumped by 81.83%, exceeding the performance of the broader market during that same time frame. Although NFLX had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- NFLX's revenue growth trails the industry average of 46.3%. Since the same quarter one year prior, revenues rose by 23.3%. 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.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. When compared to other companies in the Internet & Catalog Retail industry and the overall market, NETFLIX INC's return on equity is below that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to -$195.97 million or 423.43% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full analysis from the report here: NFLX