Netflix Fueled by Original Programming, Even as Its Costs Hold Earnings Back, Analysts Say - MarketWatch
Which demonstrates that the maxim “Content is King” should change to “Great Content is King” in this age of Peak TV.
Shares of Netflix Inc. soared 6% Thursday morning, a day after the company beat fourth-quarter earnings expectations and showed strong subscriber growth.
With the stock gains pushing Netflix NFLX, +5.73% to a record level Thursday morning, analysts were enamored of the company’s rapid subscriber additions in the U.S. and even more so internationally. Still, Netflix’s promise to continue original programming, which means continued spending, weighed on some analysts who believe the company may struggle to see international profitability.
Shares of Netflix have gained 9% in the past three months, as compared with the S&P 500’s SPX, -0.11% gain of 6%.