Name of opportunity: 👀
Netflix, Inc
New hits from Aki Isoyama on the way: 📺
On Thursday, Netflix will drop its second quarter earning data - which could have a gigantic impact on the stock. It’s predicted that the stock could rise or fall by up to 8.3%.
Five days ago, the streaming service also announced an exclusive five year year deal with the Japanese producer Aki Isoyama, who has produced a number of hit shows. Netflix will produce and distribute new TV shows as well as films from Isoyama, whose hit comedy-drama show ‘Extremely Inappropriate!’ was at the top of the most-watched chart in Japan for three consecutive weeks earlier this year. Work has already begun on her first TV show for Netflix under the new deal.
How hot is this investment opportunity? 🔥🔥🔥
Netflix is currency rated a ‘Buy’ overall by analysts. If Netflix reaches or exceeds analysts’ predictions, its net income could go from the year prior’s Q2 figure of US$1.5 billion to US$2.1 billion. Investors will be waiting to see the results in these financial metrics, as well as whether the company has managed to increase growth in its number of subscribers. This number has recently grown since Netflix introduced a stricter policy around sharing passwords.
Analysts also expect the company’s revenue to have reached US$9.51 billion, up from Q1’s revenue of US$9.37 billion.
Last year, Japanese-language content was the third most popular content in a language other than English on Netflix, after content in Korean and content in Spanish. Many analysts think Netflix’s increased focus on regional content will help it grow in different markets. It has been noted that many US based streaming services and media companies, including Disney and Amazon Prime Video, are also investing in Japanese content right now. International companies are competing to attract attention from viewers - only 44% of households in Japan have a streaming service subscription compared to 86% in the US. Japanese content is also very popular overseas, with the English-language adaptation of manga ‘One Piece’ hitting the number one spot on the most-watched chart in 86 countries. With all these factors in mind, the news that Netflix is continuing to invest in Japan with this high profile deal will probably be very welcome to investors.
Grab the popcorn: 🍿
The streaming company Netflix is available in over 190 countries and has 270 million paid memberships. It was founded in 1997 as the first mail-order DVD rental service, and it launched its video streaming on demand (VSOD) service in 2007. In 2011, Netflix began commissioning the creation of new content, beginning with the political drama House of Cards. As of October last year, Netflix was the 23rd most visited website in the world and 23.66% of its traffic was from US viewers.
Which neme?: 🔍
‘Big Tech’, ‘Analyst Recommendation Changes’ and ‘This Week’s Earnings’
Download Nemo to tune in and see if Netflix’s stock goes up on Thursday
