Netflix Share Increases After Announcing Fast Worldwide Expansion
The share Netflix has done very good business Wednesday on the American Stock Exchange. Their share price rose immediately after the opening by a massive 17 percent. Netflix announced Tuesday during the presentation of the quarterly figures that the streaming service over two years will be available worldwide. This obviously sounds like music to shareholders and interested investors. After the rise Wednesday takes a share Netflix around $ 410.
Currently Netflix is already available in about fifty countries, but that number should rise in 2017 to around 200. Previously Netflix expected the global expansion to take longer. Based on this informatjion, analysts have adjusted their share price expectations upwards. According to Reuters, analysts estimate that the share price will rise to $ 450, which took a share Tuesday another $ 348.
Edward Williams, an analyst at BMO Capital Markets, told Reuters that the expansion plans of Netflix are “aggressive but possible.” “More importantly, this signals when the end the period of heavy investment will end.” Netflix is currently using profits made on the US market to fund expansion in other countries. In the fourth quarter, as net income of 83 million dollars on revenues of $ 1.48 billion realized. In the fourth quarter, the global number of Netflix subscribers increased to 57.4 million. That’s 13 million more than the year before.