Netflix wants to produce 80 original movies next year

Randall Padilla
October 18, 2017

In a quarterly shareholder update Netflix wrote: "As we move into 2018, we aim to achieve steady improvement in worldwide profitability and a growing operating margin as our success in many large markets helps fund investments throughout Asia and the rest of the world". If you are accessing this report on another website, it was copied illegally and republished in violation of global trademark and copyright legislation. Meanwhile, the average 12-month price target from Wall Street analysts is now $194.84, this means that the stock is overpriced by -4.024%. The numbers reinforced its dominance in the pay video streaming space with RBC Capital Markets analyst Mark Mahaney saying it has eight times more subscriptions than the closest competitor.

Netflix chief content officer Ted Sarandos said Monday that the streaming service plans to release 80 feature-length movies in 2018, a number that would dwarf top Hollywood movie studios.

Netflix's long-term debt and other obligations totaled $21.9 billion as of September 30, up from $16.8 billion at the same time previous year. Institutional investors own 81.02% of the company's stock. W.G. Shaheen & Associates DBA Whitney & Co acquired a new position in Netflix during the first quarter worth approximately $208,000. Revenue was $2.98 billion vs. $2.97 billion expected.

Nonetheless, Netflix has remained profitable, under US accounting rules.

Earlier this month, Netflix announced that it'd be raising its prices in the US starting in November, with a statement from the company saying that the price increases are adjusted to add more exclusive TV shows and movies. Management expects to add 6.3 million subscribers during the October-December period, slightly more than what analysts are anticipating, according to FactSet.

Netflix has done some fantastic work in the world of television, quickly establishing themselves as Emmy mainstays with shows like House of Cards, Master of None, and more. The company's stock had a trading volume of 14,987,140 shares. The company has market cap of $87.51 billion.

But that would be more hard to do if Netflix's stock price plummets amid concerns about its debt.

Wedbush Securities analyst Michael Pachter said investors need to consider Netflix's "cringe-worthy cash burn" and growing competition. "It's probably only worth something to someone who hasn't been subscribing to Netflix for the past five years", Pachter says. For the moment, the majority of analysts seem relaxed on the expected bump in content spending for the company in 2018 to a range of $7B to $8B.

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