Daniel Ernst Says Netflix, Inc. (NFLX) Is Not In Trouble

0

Despite slow subscriber growth, Netflix, Inc. (NASDAQ:NFLX) is going to be fine, Daniel Ernst of Hudson Square Research said in a discussion on CNBC.

Ernst made the comment about Netflix, Inc. (NASDAQ:NFLX) after the company’s stock was pounded in after-hours trading as it reported lower-than-expected subscriber growth for the third quarter of the year.

“I’m not going to pound the table today during a market meltdown when they missed subscriber growth. Subscriber growth is the key to the story but they are going to be fine. Subscriptions are up 33% year over year,” he said.

Netflix, Inc. (NASDAQ:NFLX) lost more than 23% of its stock price or over $100 in after-hours trading as it reported slower subscriber growth. However, did report a top line of $59 million, a marked increase from the $32 million profit the company reported for the same quarter last year.Netflix, is NFLX a good stock to buy, Daniel Ernst, According to Ernst, Netflix, Inc. (NASDAQ:NFLX) also saw a decline a decade ago when it was rumored that Amazon.com, Inc. (NASDAQ:AMZN) may compete with their DVD delivery service. It also dealt with another decline three years ago, he added, when they lost subscribers. However, the company’s stock has soared 4,000% over the last 10 years, he noted.

The company should also be able to weather the coming competition from HBO, he said, as the two services will likely complement each other. HBO does not have the same breadth of content Netflix has, he added.

Netflix, Inc. (NASDAQ:NFLX) shareholders includes Carl Icahn’s Icahn Capital LP which reported about 1.76 million shares in the company by the end of the second quarter of the year.

Suggested Articles:

Most Expensive Alcohol Brands

Most Expensive Specialty Crops

Share.