Netflix (NASDAQ:NFLX), the Streaming pioneer, stock jumped up in after-hours trading after it revealed it added more than twice the new subscribers it anticipated amid the spread of COVID-19.
NFLX reported the addition of 15.77 million paid subscribers globally in the first quarter. Netflix’s biggest quarter for compensated internet improvements to its subscriber total earlier was 9.6 million in the year-ago quarter, based on FactSet. Participants were looking for global compensated streaming subscriber additions of 8.22 million on average, according to FactSet, after Netflix estimated 7 million new subscribers three weeks ago.
Of $709 million, or $1.57 a share, compared with $344 million, or 76 Cents a share, at the year-ago period. Revenue climbed to $5.77 billion, From $4.52 billion in the year-ago period. Analysts surveyed by FactSet Had an estimated $1.64 a share on revenue of $5.75 billion on average.
Is Netflix Stock A Buy?
Many investors are wondering if Netflix NFLX stock is a buy because of its recent high. The short answer is no, Netflix stock is not a buy because it has jumped up too fast and, more importantly, industry insiders are warning that many of the new subscribers are on a trial basis. The streaming industry is now offering free services by competitors.
What Happened in The Markets
The markets dropped globally again. Asian markets fell overnight. Hong Kong extended lockdown measures by another two weeks to halt the coronavirus disperse. The steep decrease in oil prices stoked investor concerns around the worsening global growth outlook and the possible consequences for other goods such as autos and electronics.
European markets declined. Italy said it hopes to begin gradually easing its lockdown measures on May 4. German Chancellor Angela Merkel is open to expanding the European Union budget to be able to fight the economic damage resulting from the coronavirus. Spain Expanded its unemployment benefits along with the ECB reiterated that it’s prepared to step in if needed.
U.S. markets also dropped. The U.S. Senate reached an agreement on an emergency financing package for smaller businesses, and will also provide funding for hospitals and nationwide testing. Concerns in the petroleum market continued to way on equities. President Donald Trump said he has instructed the Secretary of Energy and Treasury Secretary to draw up a plan to support U.S. gas and oil companies. Existing home sales fell more than expected in March, as the coronavirus hurt buy action.
In the S&P 500, all 11 sectors ended lower. The top sectors now are energy, real estate, and consumer staples. Staples and property and principles outperformed as defensive sectors.
Energy outperformed on information tat that the White House could soon help oil and gas companies find funding.
Beyond Meat (BYND) jumped on reports that Starbucks restaurants in China will start serving the company’s alternative meat. Lab Corp (LH) shares rose after the FDA approved its at-home coronavirus test. Fortinet (FTNT) weighed on tech after analysts in Cowen Research cut their price target on the cybersecurity business.