Welcome!

News Feed Item

The Zacks Analyst Blog Highlights:Netflix, Moody's, Amazon, Verizon and Sony

CHICAGO, Feb. 6, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Netflix Inc. (Nasdaq:NFLX-Free Report), Moody's (NYSE:MCO-Free Report), Amazon (Nasdaq:AMZN-Free Report), Verizon (NYSE:VZ-Free Report) and Sony (NYSE:SNE-Free Report).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Wednesday's Analyst Blog:

Netflix to Issue $400M in Debt

Netflix Inc. (Nasdaq:NFLX-Free Report) recently announced that it will raise $400.0 million by issuing senior notes. The company expects to use the net proceeds to fund its international expansions as well as corporate expenditures. Last year, Netflix raised $500.0 million securities for similar purposes.

According to Bloomberg, Netflix issued 5.75% senior notes due 2024 that yield 313 basis points (bps) more than bonds with similar maturity dates. Most recently, Moody's (NYSE:MCO-Free Report) raised Netflix's credit rating outlook to positive (Ba3), citing strong operating performance and continuing subscriber growth.

We believe that the cash infusion will help Netflix pursue its global expansion policy. Although the company has ventured into Latin America and Europe (U.K., Ireland, Nordic countries and the Netherlands), it has immense growth opportunity in the uncharted areas of Western Europe.

We believe the strategy to expand internationally will be accretive for Netflix over the long term, as it significantly diversifies the risk of customer concentration in a particular region. At the end of 2013, Netflix had 10.93 international members and revenues jumped to $712.4 million from $287.5 million at the end of 2012.

However, the international streaming segment continued to report loss at the end of 2013. Although Netflix expects to add 1.60 million international subscribers and report revenues of $267.0 million, loss is projected to be $42.0 million in the first quarter of 2014.

We also believe that Netflix will use the net proceed to acquire original content in 2014. The company's expanding content portfolio that includes original productions such as House of Cards, Hemlock Grove, Orange is the New Black and Lilyhammer, drove the subscriber base in 2013.

Total streaming subscriber base increased 11.08 million year over year to 44.35 million at the end of 2013. Netflix in collaboration with The Weinstein Company (TWC) will stream the drama series Marco Polo in late 2014. The company will also stream original shows such as Sense 8 (early 2015) and Narcos over the next couple of years.

We believe that the expanding content portfolio and launch in the new international markets will help it to counteract stiff competition from the likes of Amazon (Nasdaq:AMZN-Free Report) Prime, HBO, Hulu, Youtube, iTunes Video and BBC iPlayer. Netflix will also face competition from Verizon (NYSE:VZ-Free Report) and Sony (NYSE:SNE-Free Report) that are gearing up to enter the streaming business.

Moreover, the increasing debt level remains a concern. Further, Netflix has $6.5 billion due for content streaming obligations, out of which $2.78 billion needs to be paid within the next 12 months. After that period, Netflix needs to pay $2.83 billion within a three-year time frame. Going forward, this huge impending payment obligation would remain an overhang on the stock.

Currently, Netflix has a Zacks Rank #2 (Buy).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.

Get the full Report on NFLX - FREE

Get the full Report on MCO - FREE

Get the full Report on AMZN - FREE

Get the full Report on VZ - FREE

Get the full Report on SNE - FREE

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

[email protected]

http://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

SOURCE Zacks Investment Research, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
In this presentation, you will learn first hand what works and what doesn't while architecting and deploying OpenStack. Some of the topics will include:- best practices for creating repeatable deployments of OpenStack- multi-site considerations- how to customize OpenStack to integrate with your existing systems and security best practices.
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
They say multi-cloud is coming, but organizations are leveraging multiple clouds already. According to a study by 451 Research, only 21% of organizations were using a single cloud. If you've found yourself unprepared for the barrage of cloud services introduced in your organization, you will need to change your approach to engaging with the business and engaging with vendors. Look at technologies that are on the way and work with the internal players involved to have a plan in place when the ine...
The now mainstream platform changes stemming from the first Internet boom brought many changes but didn’t really change the basic relationship between servers and the applications running on them. In fact, that was sort of the point. In his session at 18th Cloud Expo, Gordon Haff, senior cloud strategy marketing and evangelism manager at Red Hat, will discuss how today’s workloads require a new model and a new platform for development and execution. The platform must handle a wide range of rec...
DXWorldEXPO LLC, the producer of the world's most influential technology conferences and trade shows has announced the 22nd International CloudEXPO | DXWorldEXPO "Early Bird Registration" is now open. Register for Full Conference "Gold Pass" ▸ Here (Expo Hall ▸ Here)
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science" is responsible for guiding the technology strategy within Hitachi Vantara for IoT and Analytics. Bill brings a balanced business-technology approach that focuses on business outcomes to drive data, analytics and technology decisions that underpin an organization's digital transformation strategy.
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time t...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and sh...
CloudEXPO New York 2018, colocated with DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.