Netflix, Inc. (NASDAQ:NFLX) stock was up 0.99% towards the end of the noon hour on April 10. Netflix has retreated from its all-time high of $333.98 reached in mid-March due to broader downward pressure on U.S. stocks. The streaming giant is expected to release its earnings on April 16, and many analysts are confident in yet another strong showing.
In the fourth quarter Netflix reported net additions of 8.33 million subscribers compared to 6.39 million expected. Revenue was $3.29 billion and earnings per share were in line with expectations at $0.41. In response to these earnings Netflix said that it would spend $7.5 billion to $8 billion on content in 2018. The company projects negative cash flow between $3 billion and $4 billion this year.
Netflix is also wrestling with content from rivals in the streaming sphere. Amazon.com, Inc. recently announced its intention to launch a Lord of the Rings television series which may cost over $1 billion. Facebook Inc. and Apple Inc. are also rolling out streaming alternatives that are expected to compete and spend at least $1 billion annually on content going forward.
The company is also wrestling with the old guard. Netflix reported that it may pull films from the Cannes Film Festival in response to a policy that stipulated that streaming productions could not win the top prize. Shares of Netflix are still up 51% in 2018 so far. Its recent dip provides investors with an opportunity to jump in with its first quarter results set for release next week.
