For Immediate Release
Chicago, IL – Jan 16, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Netflix Inc (NASDAQ:NFLX) , Apple (NASDAQ:AAPL) , Alphabet (NASDAQ:GOOGL) and NetApp Inc. (NASDAQ:NTAP) .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Monday’s Analyst Blog:
Netflix (NFLX) Tops Non-Game Apps
Netflix Inc topped the list of overall non-game apps by revenues across Apple’s App Store and Alphabet’s Play Store in 2017, per the latest report by SensorTower.
Per the report, Netflix is the top revenue earner across Apple App Store in the non-gaming category. However, it ranked sixth on Play Store, trailing HBO NOW, which ranked fifth on the platform.
Per the estimates of the firm, as reported by TechCrunch, Netflix’s gross subscriber revenues increased 138% year over year to $510 million in 2017, which is more than double of what users spent in 2016.
Original Content Drives Growth
Netflix is on a growth trajectory, gathering momentum not only on its home turf but also in international markets. Netflix's core strength in providing a diverse portfolio of original content is anticipated to draw more subscribers in the coming days.
Notably, shares of Netflix have gained 65.5% in the past year, substantially outperforming the industry’s 18.7% rally.
Netflix’s investment in producing films is also beneficial for the company. The company’s portfolio of original films improved with the addition of Death Note, Naked and To the Bone to its platform in the third quarter.
Per Nielsen data, which was quoted by Bloomberg, Bright released in December and starring Will Smith and Joel Edgerton with a budget of $90 million attracted 11 million views in the first three days of release. Given its popularity, the company announced a sequel.
Moreover, the web series launched by the company in the fourth quarter of 2017 like Stranger Things 2, Dark and The Crown Season 2 are gaining popularity worldwide.
In our view, the company’s efforts to attract viewers through increased investments in regional programming are positive as this is expected to expand its international presence as the domestic market approaches saturation.
We note that at the end of the last reported quarter, Netflix's paid streaming members across the globe increased 24.9% year over year to approximately 104 million. This was driven by 10.5% and 43.2% year-over-year increase in paid members in the Domestic and International Streaming Segment, respectively.
Netflix has over 109 million total subscribers globally. We believe continuing subscriber addition and expanding content portfolio are the key catalysts that will help Netflix to sustain growth going forward.
However, stringent competition from established players like Amazon (NASDAQ:AMZN) Prime, Hulu and HBO is a major headwind.
Moreover, Apple and Facebook (NASDAQ:FB) are also gearing up to boost their original content portfolio, which poses a threat to the company.
Zacks Rank & Stock to Consider
Netflix carries a Zacks Rank #3 (Hold).
A better-ranked stock in the broader technology sector is NetApp Inc., sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Long-term earnings growth rate for NetApp is projected to be 11.3%.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
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NetApp, Inc. (NTAP): Free Stock Analysis Report
Netflix, Inc. (NFLX): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
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