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  • krp76 replied to the topic Discussion Topic: Exercise your research skills in the forum Business 101 7 years, 8 months ago

    Netflix financials and state of company.

    P/E ratio: 244.39
    Gross Margin: 31.72
    Operating Margin: 4.3
    ROI: 3.49
    Revenue: 8.83 Billion
    Market Cap: 86.13 Billion
    Share Price: $199.49
    EPS: 0.15 vs 0.16 expected (July 2017)

    From these financials it is clear from the P/E ratio and the projected growth of the stock that the company is in a rampant growth phase. With further research into the financial strategy Netflix is expanding it’s markets and creating a global user base as it added 5.2 million subscribers based off the July 2017 financial report. Moreover Netflix is focusing on original content and this has led to the speculation and rise in the stock price, along with it’s expansion into global markets and tapping new user bases.

    Sources
    https://www.cnbc.com/2017/07/17/netflix-earnings-q2-2017.html
    http://www.marketwatch.com/investing/stock/nflx/profile