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S&P Equity Research Director Tuna Amobi on Netflix expected earnings and outlook.
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How many -- you watch Netflix how many of you all -- -- OK Netflix second quarter earnings will be up tomorrow in this hour.
Should you buy shares before the report -- joining us now is -- -- -- at the equity research director of media and entertainment analyst he has a 110 -- Twelve month price target on this stock outspent -- Let what are you looking for in the report tomorrow what are you expecting.
Shore I'm so we're keeping our -- -- call for a buy recommendation highway twelve on target of 110.
They treat it three key things will be looking for first on -- -- -- growth by domestic and international expect the company to does anywhere from seven to 900 million.
-- -- thousand dollars of streaming subscribers -- peace domestically and -- -- national.
We're gonna be watching for.
The rollout of the company servicing -- and Allen which seem to be off to a good start.
All -- the international could doubt weigh on the quarter quarter's results.
We think Q2 is going to be a seasonally slow quarter.
Having said that we think that should said the company up for the values stronger second half of the year as usual -- spending is gonna be closely scrutinized.
-- -- look at this and I say wait a minute this was a stock that was 285.
Dollars just was that within the past year it's a it'll go down in corporate.
Notes about the stuff is one of the biggest bond goals look at that rise and and the fault for bad management decisions really nothing that.
But the company was doing wrong but of course that may raise prices and they annoy people by changing things too quickly and and awaited -- -- see it.
Can it get up to the days of -- the 280 -- once again and what do they need to do to get there.
I think you just keep the core about contrarian call 'cause we feel there is investors out there who -- let's look beyond the ground -- steps which you alluded to last year.
We think the companies making gradual progress to recover from those.
-- looking beyond.
You know this -- quarter we think that in -- national.
He's gonna continue to be.
-- very major.
Coking -- fat terror which are actually much more internationally South America K and Ireland you can Alan M and Latin America and they -- already profitable in Canada.
We think that there's other markets to -- this setting and a launching new marketing Europe these Q4.
So overall where have fairly satisfied.
There's still refuge -- of investors out there.
-- think the stock is overvalued keep in mind the stock is already recouped some 30% in this.
In the past five weeks we're very encouraged by data -- -- we still think there is still a long way to go to last stuff -- all time high as you indicated.
How concerned are you -- about competition Amazon is a constantly talking about getting interested in dreaming -- mean how much of a threat does that pose.
Well we've looked up that issue very closely we think that the competition online -- space while it has intensified in recent months.
Like solved by Amazon -- -- -- and down Google of course.
And -- he would talk about it TV everywhere services from cable and satellite operators when -- -- field -- or Comcast stream peaks.
It's getting them much more -- -- field.
However I would remind investors that Netflix has somewhat of the first mover advantage and we're satisfied in the company's.
Efforts to continue to gain mark.
Can -- and we'll sound was position there was that recent report that came out that indicated an I don't know let me ask if you believe that indicated that Netflix was the most watched outlet on television -- -- Fox more than anything that's been extraordinarily popular -- do you believe the metrics upon which they based that.
Well I think there is some truth to that if you consider Netflix as a virtual.
Internet network.
In fact what we've seen in the last few quarters is that -- Streaming viewership ours continues to accelerate Chris the CEO -- his -- -- -- pointed to one billion.
Potts -- mean hours in June which was an all time record.
So you could argue that you know it's in the major threat to the FP TV providers which -- which is why do you think you -- seeing all this tension has -- potential cannibalization of of that traditional television ratings.
I would Netflix that's -- -- -- let me be an issue on.
Viacom spot you learn about the Nickelodeon ratings decline so there's a whole lot of issues right now which are being.
Work through to determine the impact of -- We saw -- long term some short term to integrate SE you.
Likewise thanks for having me -- -- OBS and.
