Over the last six month, the stock hasn't even been able to compete against the market. The market, as measured by the Value Line Index, dropped 5% in the last six months, while Netflix tanked 49%.
Is there any chance at all that the stock's price will recover?Netflix provides Internet subscription services for TV shows and movies in the U.S. and internationally. The company offers its subscribers a chance to watch unlimited TV shows and movies streamed over the Internet to their TVs, computers and mobile devices. It also provides standard definition DVDs and Blu-Ray discs to its subscribers. The company was founded in 1997 and is headquartered in Los Gatos, CA. Factors to Consider Barchart technical indicators:
- 80% Barchart technical sell signal Trend Spotter sell signal Trading below its 20-, 50- and 100-day moving averages Lost 15.77% last month Lost 28.09% last quarter 78.59% off its one-year high Relative Strength Index 29.72% Recently traded at 57.73, which is way below its 50-day moving average of 70.53
- Widely followed by Wall Street where 21 brokerage firms have assigned 33 analysts to issue opinions on the issue Analysts project that revenue will increase by 12.70% this year and another 15.00% next year Earnings are estimated to decrease by 99.80% this year but increase by 2,425.00% next year and continue to increase by an annual rate of 16.58% over the next 5 years (That large figure is correct, as the stock pulls out of negative terrain.) These consensus numbers resulted in 2 strong buy, 6 buy, 18 hold, 6 under perform and just 1 sell recommendation for clients to consider If the analysts' projections are correct, they predict investors should see a 21% to 25% annual total return over the next 5 years The P/E ratio is 29.69 compared to the 14.20% P/E of the market No dividend is paid The company has an A balance sheet rating The public does not seem happy with its pricing policies Profits from the U.S. divisions are being used to fund expansion in the overseas markets -- time will tell if this is a good strategy
- Widely followed by both the professional and individual investors As pointed out above, recommendations from Wall Street are mixed Some popular individual investors' Web site are still very high on the stock Short interest remains high but level Jim Cramer has not been kind to this stock TheStreet Ratings give the stock only a C ranking
- TheStreet Ratings: B Revenue projected to increase by 45.10% this year and 27.80% next year Earnings estimated to increase by 18.00% this year and 16.10% next year
- TheStreet Ratings: C+ Revenue projected to increase by 30.90% this year and 28.30% next year Earnings estimated to decrease by 10.90% this year but increase by 132.00% next year
- TheStreet Ratings: A Revenue projected to increase by 20.20% this year and 14.90% next year Earnings estimated to increase by 15.80% this year and 16.60% next year