Topic: How To Invest

Pat: What are your thoughts on Netflix? Thanks.

Article Excerpt

Netflix, $430.26, symbol NFLX on Nasdaq (Shares outstanding: 59.9 million; Market cap: $25.8 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 that let users stream movies or rent DVDs with no due dates or late fees. Monthly plans cost $7.99 for unlimited streaming by two users. Netflix’s distribution centres across the U.S. allow most subscribers to get next day delivery. In the three months ended March 31, 2014, Netflix’s revenue rose 24.0%, to $1.27 billion from $1.02 billion a year earlier. Earnings per share jumped to $0.89 from $0.05. The company has aggressively pushed into producing original content with shows like House of Cards, Orange Is the New Black and Hemlock Grove. Netflix hopes to hold on to current users and attract new ones by providing content they can’t find anywhere else. Netflix’s strong growth will likely continue at least into next year. Its subscriber count is…