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Wedbush Securities Analyst Michael Pachter gives his predictions and analysis for Netflix’s first-quarter earnings report after the bell.
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Aren't sticking with tech.
Netflix poised to see its first quarterly loss and some seven years after the -- -- -- reports so should investors buy sell or hold ahead of the earnings.
But that's Michael -- analysts when bush securities.
Other Michael I tell us what's the best thing you think Netflix has going for a company really can't get back -- at 300 dollar share pre price hike.
Days when -- thank.
Well you know -- a 45 dollar target so I think it's overvalued here but out you know as a trade.
As a trade I think you have -- -- -- Why is it even at a hundred and it's at a hundred because.
There are a lot of investors who care only about subscriber growth the company's gonna deliver solid subscriber growth tonight and I think the stock's gonna go up.
I think translating those subscribers into profits it's tough and I think investors are gonna see over the next couple quarters that's not likely to happen.
So I actually think at the first sign of subscriber growth slowing which I think it slows in June and actually turns negative in September.
I think it's over I think stock goes down so the trade is long -- earnings but I think short thereafter so anybody okay.
Long right now to be -- sell -- tomorrow.
-- -- so let me ask you about this we are expecting a mixed earnings report.
With revenue gaining earnings down lot of criticism over the company's expansion plans into Europe -- the streaming business.
-- stock today today's action off 3% obviously a very weak market broadly speaking.
So do you think that portends what to expect that we might actually to your point -- disappointed well actually not your point but disappointed sooner maybe -- even think.
No I think I think they're gonna have a solid sub number I think those the number that matters tonight.
Is domestic streaming subs and the high end -- their guidance ranges one point nine million they're gonna be that.
OK so the in the fourth quarter I believe net flicks and guided on the subscribers twenty point eight to 23 point six million yen will they come in that range of -- come come below.
What -- -- -- in its fourth.
It's kind of a mess on on have -- but above the 23 point six.
They split up their subscribers to somebody who subscribe to both the dvd and streaming -- to subscribers.
So the numbers get a little confusing domestic streaming subs are the guys who they make money on and that's the number everybody's looking at.
You wanna see that domestic streaming sub number be up by more than one point nine million I think it's gonna be up by more than that.
OK appreciate your analysis there Michael -- we'll see what happens with Netflix after the closing up.
Said the -- selling -- triple digits 742 points markets now continue with Tracy -- and -- Webster and a look at the two big deals announced this morning we'll.
