Topic: How To Invest

Hi Pat. What is your opinion of Netflix? Thank you.

Article Excerpt

Netflix, $244.96, symbol NFLX on Nasdaq (Shares outstanding: 56.1 million; Market cap: $14.4 billion; www.netflix.com), is the largest online entertainment subscription service in the U.S, with over 100,000 DVD titles for rent. The company has various subscription plans—including monthly plans starting at $4.99—that let users stream movies or rent DVDs with no due dates or late fees. The company’s distribution centres across the U.S. allow most subscribers to get next-day delivery. In the three months ended June 30, 2013, Netflix’s revenue rose 20.3%, to $1.09 billion from $889.2 million a year earlier. Excluding one-time items, the company earned $0.49 a share, up from $0.11. Netflix holds cash of $1.1 billion, or $19.61 a share. Its $500.0-million long-term debt is a low 3.5% of its $14.4-billion market cap. The company has made an aggressive push into producing original content, including shows like House of Cards, Hemlock Grove and a new season of Arrested Development. Netflix hopes to keep its subscribers loyal by providing…