Netflix Earnings Need To Show Subscriber Growth Or Stock Will Suffer

Netflix will report its second-quarter earnings on Monday, July 25. Â*Investors are eagerly awaiting these results given cheap mbt m.walk shoes the spate of major announcements over the last quarter, in particular the recent price increases for bundled and DVD-only packages, as well as its move into Latin America. Last month, Netflix stock resumed its vertical ascent that began in early 2010 at around 60. Â*It peaked two weeks ago above 300 and dropped back below 280 in recent sessions. The key question that keeps popping up is whether or not Netflix's subscriber growth will slow down. This quarter is no different in terms of key factors to watch as subscriber growth is the main focus. Increasingly, growth will be driven by international growth and streaming plans which present some new risks. We look at these below. Our current price estimate for Netflix stands at 153, and we are currently reviewing and revising our estimates in light of recent announcements. Subscriber cheap mbt shoes sale Growth, Watch Out for Details While it may not come as a surprise if Netflix continues to report record subscriber gains in Q2 2011, we will pay closer attention to the type of growth it’s experiencing – DVD or streaming. Increasingly, we believe that it will be useful for investors to segregate the growth in terms of hybrid plans & streaming plans as this helps in understanding Netflix's prospects better in the following way. Subscriber growth coming primarily from streaming-only plans implies lesser risks to Netflix's cheap mbt shoes sale future growth compared to growth that comes from hybrid plans for two reasons. First, Netflix's lead in streaming is large enough to continue to attract more subscribers in the near future. Second, recent price hikes for its hybrid plans could create risk for some DVD-focused customers as they could explore other options such as Redbox and Blockbuster, which was recently purchased by Dish Network. Therefore, if the subscribers are shifting toward streaming-only Netflix Earnings Need To Show Subscriber Growth Or Stock Will Suffer plans, we see this is as more encouraging than DVD focused plans. See our complete analysis for Netflix's stock. Like our charts? Embed them in your own posts using the Trefis WordPress Plugin.