T = Trends for a Stock’s Movement
Netflix is an Internet subscription service that streams television shows and movies. The company’s subscribers can watch unlimited television shows and movies streamed over the Internet to their televisions, computers, and mobile devices. In the United States, subscribers can also receive DVDs delivered to their homes. Netflix has revolutionized the television and movie industry with its services.
“It’s been a good year for Netflix,” wrote CEO Reed Hastings and CFO David Wells in a letter to shareholders. “People around the world want what we offer: consumer-in-control Internet television.” Today, this seems to be the understatement of the century. As quick as an instant streaming download, Netflix shares skyrocketed more than 16 percent to around $388 in after hours trading — circling a high for the year — following the news the the video streaming phenomenon beat earnings expectations. The company reported full year net income of $112.4 million, crushing the Street’s call for $103.4 million. Earnings per share were $1.85, also well ahead of the the Wall Street consensus estimate. At $4.4 billion full-year revenue was in line with expectations. For the fourth-quarter, Netflix’s net income came in at $48.4 million, or 79 cents per share, beating the Streets $40.8 million and 66 cent estimates respectively. At $1.2 billion, revenue was also above expectations.