Netflix (NFLX) CEO Hastings Expects Loss in FY12, But Subscribers Gains Being Seen
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Financial Fact:
Total cost of revenues: 1.53B
Today's EPS Names:
BTTX, VAXX, ELYS, More
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Netflix, Inc. (Nasdaq: NFLX) is ticking higher following the announcement it has launched in the U.K. and Ireland. But investors might want to hang on before pressing play.
According to Reuters, CEO Reed Hastings said the cost to acquire content would leave Netflix in the red for 2012. He did not comment on the potential for Netflix to turn a profit for the year.
On the positive side, Hastings said the company began gaining U.S. subscribers again in the fourth quarter of last year.
Further, Hastings said there are no plans in the works for Netflix to raise additional capital in 2012, following a $400 million raise made last November.
Comments were made by Hastings in a London interview Monday, following launch of services there.
For an investor comparison, the Street is currently modeling fiscal 2012 earnings of 2 cents per share, indicating that there's still a bullish view on the Company. Should Hastings' view take hold, and estimates revised, that might spell a little more downside for the stock, though a loss in the year is likely mostly priced in. Murmurs of a potential buyout could still add to overall volatility.
Shares of Netflix are up about 4 percent ahead of the open Monday.
According to Reuters, CEO Reed Hastings said the cost to acquire content would leave Netflix in the red for 2012. He did not comment on the potential for Netflix to turn a profit for the year.
On the positive side, Hastings said the company began gaining U.S. subscribers again in the fourth quarter of last year.
Further, Hastings said there are no plans in the works for Netflix to raise additional capital in 2012, following a $400 million raise made last November.
Comments were made by Hastings in a London interview Monday, following launch of services there.
For an investor comparison, the Street is currently modeling fiscal 2012 earnings of 2 cents per share, indicating that there's still a bullish view on the Company. Should Hastings' view take hold, and estimates revised, that might spell a little more downside for the stock, though a loss in the year is likely mostly priced in. Murmurs of a potential buyout could still add to overall volatility.
Shares of Netflix are up about 4 percent ahead of the open Monday.
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