FANG is an acronym that TheStreet's Jim Cramer created for a basket of high-performing stocks that includes Facebook, Amazon.com (AMZN), Netflix and Google's Alphabet (GOOGL).
Shares of Amazon.com, Netflix and Alphabet are all advancing this afternoon, as Facebook stock skyrockets roughly 15% following Wednesday's fourth quarter earnings and revenue beat.
Even so, Netflix shares are down about 17% year-to-date.
The stock closed about 6% lower during yesterday's trading session after Indonesia's largest telecommunications provider, Telkom, blocked access to its video-streaming service, the Wall Street Journal reported.
The Indonesian government will decide next month whether to fully block Netflix or to create a new regulation that would allow video-streaming services to continue business in the country. In the meantime, Netflix will be available on non-Telkom networks, although Telkom represents more than half of the total Indonesian market, according to the Journal.
Insight from TheStreet Research Team:
Chris Laudani mentioned Netflix in a recent Real Money post. Here is a snippet of what Laudani had to say about the stock:
When Netflix launched its streaming service in the U.S., it was a red-hot player in the DVD rental business. It was easy to launch a streaming service off the back of an already successful DVD rental business. But, now, how does Netflix launch a streaming service in countries that have never heard of Netflix? Don't you think that is going to get expensive? Don't you think it's going to be expensive to dig up subscribers in Azerbaijan? And how many of those Azerbaijan subs want to watch a $17 million Irish war drama?
Most analysts think Netflix will be cash-flow positive in two years, but with weak economies overseas, an impossibly strong dollar and high content costs, I think Netflix will burn through a lot more cash than anyone thinks, right now. Add in a secondary stock or bond offering for later this year or next and you can feel the enthusiasm starting to wane for this stock.
Hey, I hope I'm wrong, but I don't think I will be.
- Chris Laudani "Drop Netflix and Chill" Originally Published on 1/28/2016 on Real Money.
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Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.
Netflix's strengths such as its solid stock price performance, robust revenue growth and expanding profit margins are countered by weaknesses including feeble growth in the company's earnings per share, deteriorating net income and generally higher debt management risk.
You can view the full analysis from the report here: NFLX
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.NFLX data by YCharts