Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

What To Look Out For From Netflix, Inc. (NFLX)’s Earnings Call As An Investor?

Netflix, Inc. (NASDAQ:NFLX) is hours from reporting its fourth quarter and full year earnings in the earnings call. Netflix, Inc. (NASDAQ:NFLX) had a fantastic 2014, when it had crossed 50 million subscribers globally, but even though it met the expectations on revenues, it missed the subscriber growth expectation for third quarter, due to which the stock stumbled towards the end of the year. Will the fourth quarter results meet the streets estimates and help the stock on its way up? S&P Capital IQ Analyst, Tuna Amobi talked on CNBC about what are the numbers in the Netflix, Inc. (NASDAQ:NFLX)’s report that would interest the investors like him and propel the stock higher.

Netflix, BBC, is NFLX a good stock to buy, Doctor Who, Copper, House of Cards Trilogy, Keeping Up Appearances, Luther, Monarch of the Glen, North & South, The Buccaneers, The Office UK, Torchwood, Wallander

Amobi mentioned that other than profits and revenues, all the investors including him would be looking forward to see the subscriber growth for Netflix, Inc. (NASDAQ:NFLX) both in US and globally. He added that Netflix, Inc. (NASDAQ:NFLX) had hiked the subscriber fees in May 2014, due to which the subscriber growth in US slowed for third quarter. He said that he would be interested to see if that effect carries on into the fourth quarter as well or not. He mentioned that globally Netflix, Inc. (NASDAQ:NFLX) has added subscribers in Western Europe and he said that he would be interested to look at that as well.

“I think the content spending is always going to be in focus. They have got almost $9 billion of streaming content obligations. They are spending on marketing. International expansion, I think they have guided to additional losses there, but I think the swing factor is going to be how much traction they are getting in some of the latest international market. We expect the margins in the US to continue to expand, potentially reaching the high 30%. So those are some of the potential upsides. On the flipside we think that the international is going to determine whether the company continues to sustain profitability overall in 2015,” Amobi said.

He thinks that the recent developments in ‘Net Neutrality’ will act as a tailwind for Netflix, Inc. (NASDAQ:NFLX), because he said that Netflix, Inc. (NASDAQ:NFLX) has been always against paying the broadband providers for connection.

Amobi thinks that in spite the heavy competition from, Inc. (NASDAQ:AMZN), Hulu and other cable TV provider,  Netflix, Inc. (NASDAQ:NFLX) will continue to lead the industry in 2015. He feels that Amazon making feature films will not be a short term concern for Netflix, Inc. (NASDAQ:NFLX), but it will be a medium to long term risk for them, which they will have a lot of time to react to

Disclosure: None

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.