Netflix, Inc. (NASDAQ:NFLX) is trading in the green after handily beating the subscriber growth estimates made by industry watchers. The company added 5.2 million new subscribers in the last quarter, versus the consensus estimate of 3.2 million subscribers. But there are some analysts who think that Netflix, Inc. (NASDAQ:NFLX) is not a suitable investment despite of the subscriber growth. Richard “Trip” Miller, the boss at the famous hedge fund Gullane Capital, thinks that Netflix shares will crash in the near future. Miller thinks that Netflix is operating in an industry where barriers to entry are almost negligible. Miller also cites Netflix, Inc. (NASDAQ:NFLX) massive cash burn rate of $1.5 billion for his bearish outlook.
Analysts think that Netflix, Inc. (NASDAQ:NFLX) is under threat from Facebook and Snapchat which plan to launch exclusive TV shows and streaming content. This initiative will dent the Netflix, Inc. (NASDAQ:NFLX) market share, at least in the US.
Based on the analysts' consensus: both the revenue and the net result would be on record levels. For this year NetFlix 's revenue will be around 11,48 billion Dollar. This is according to the average of the analysts' estimates. The expected revenue would be a record for the company. This is rather significant more than 2016's revenue of 8,83 billion Dollar.
The analysts anticipate for 2017 a record net profit a 523 million Dollar. For this year the consensus of the result per share is a profit of 1,16 Dollar. So the price/earnings-ratio equals an extreme 158,28.
Analysts don't expect the company to pay a dividend.The average dividend yield of the internet companies equals a limited 0,09 percent.
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