How fitting is it that Netflix
The DVD rental specialist fared a whole lot better than Manhattan did in the theatrical thriller. Netflix had a healthy quarterly report and even upped its year-end subscriber target, but that wasn't enough for investors, who sent the stock lower last night after the company's first-quarter report.
The quarter fell in line with Wall Street's expectations, with earnings, revenue, and subscribers climbing 36%, 8%, and 21% respectively. Subscriber growth outpaced the top line because of membership cost reductions last summer. Margins improved despite the rollback, hence the buoyant bottom-line spurt.
With churn and subscriber acquisition costs clocking in lower, Netflix is doing all the right things. The problem is that the stock has been hitting new highs lately. That comes with unspoken expectations.
The company's new guidance is projecting 9.1 million to 9.7 million members on its rolls by year's end. This is the second time that Netflix has raised its guidance this year. Unfortunately, it's also the second time that Netflix has upped the account tally, slightly raised its revenue target, but left its net income figure intact.
News to go
They may like 'em big in Texas, but they're going to have to settle for small in Texas Instruments
Shine on, Sam Walton. Wal-Mart
Is Rupert Murdoch's back against the Wall -- as in The Wall Street Journal? Managing editor Marcus Brauchli is stepping down, just a year into his tenure and a mere four months since News Corp.
Oh, and happy Earth Day. If you don't have time to plant a tree, at least do your best to avoid running into one.
Have a great day out there.