Investors who bet in favor of Netflix Inc (NASDAQ:NFLX) about six months ago must be truly regretting their decision now that the stock has plunged by 25% of what its value in January, 2014, had been. Several reasons have been cited to explain this decline, primary amongst which is the pressure on the company to enhance its user base on the international platform in the face of domestic slowdown. But more seminal, as per analysts, are the projection numbers released by the company as also its margins.
Subsequent to the third quarter results, Netfilx Inc (NASDAQ:NFLX) announced that it would add to its users base so as to cross the 57-million mark by the time the fourth quarter concludes. Analysts are hopeful of the company crossing these figures courtesy of a significant addition on the global arena. This in turn is likely to have a direct bearing on the earnings report and hence impact the trajectory carved by the stock. If the previous releases are anything to go by, this stock is prone to fluctuate by as much as 14% during a single trading session and this is reason enough for any investor to indulge in intra-day trading.
Adding to Netflix Inc (NASDAQ:NFLX) is the stiffening competition in this field wherein its rivals, namely Amazon Inc and HBO have both been in news lately owing to their achievements and acquisitions. While Amazon is still doling out sizeable discounts, HBO is preparing to release a stand-alone application.
Netflix Inc (NASDAQ:NFLX) is not very far behind and 2016 will be witness to actor Will Arnett returning to this streaming service for his forthcoming venture named ‘Flaked’. In this context, the actor released the following comment –
“We’re very excited to partner with Netflix—the home of original, original content—and the network I knew would be the ideal home for this passion project.”
When CEO Reed Hastings writes to shareholders, it will be interesting to note how he projects the company’s growth figures and if these tally with the option of intra-day trading.
This article has been written by Vinita Basu.