Netflix (NFLX) first quarter earnings were recently announced and very promising. The company saw an 87% increase in earnings. There is said to be a gain of 3.6 million subscribers over the past quarter. The company is dedicated to providing online video-streaming. I personally enjoy the services Netflix offers and plan on joining the Netflix community. I expect there to be much growth in the future for this company. As the prices of basic television service continue to rise, I believe more people will adopt Netflix. Netflix allows users to view almost any movie or television show on command. Netflix meets the needs of consumers in an immediate fashion. There is no need to be limited to the shows or movies aired on basic television networks.
So, where is the stock headed? I believe there will be tremendous growth in earnings for Netflix in the near future. I also think it will exceed analyst estimates. The company’s stock is currently trading at $251.67. Although Netflix’s price earnings ratio is rather high at 85, I believe the growth this company will experience will exceed estimates and drive the stock higher. The majority of the investment community believes Netflix is overvalued at its current price, but I disagree.
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