NFLX Stock Forecast: 46.19% Gain In 1 Month

NFLX Stock Forecast

Netflix, Inc. (NFLX) was a Tech Stock pick based nflx stock forecaston predictive algorithm recommended to I Know First subscribers on January 13th for the 1-months time horizon in the “Tech Stock Picks Using Data Mining” forecast. Netflix had a signal of 10.04 and a predictability of 0.41. In accordance with the algorithm, the company reported short-term capital gains of 46.19%.

Netflix was part of the stock forecast that can be found in the “Tech Stocks” Package.

The full Top 10 Tech Stocks forecast includes a daily prediction for a total of 20 stocks with bullish and bearish signals:

  • Top ten stocks picks to long
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nflx stock forecast

Netflix most recently released its earnings report on January 20th, 2015 and surged 17% the next day. The company announced that 4.33 million new subscribers signed up for the service, beating analysts’ expectations of 4 million. The 2.43 million non-US subscribers that signed up during the period was a 40% increase from a year earlier, and showed that Netflix’s spending to dominate video streaming worldwide was paying off.

Investors had previously expressed concerns about the company’s narrow margins, widening international losses, and a budget for films and TV shows that’s swollen to $9.5 billion from $7.3 billion in the past year. The positive outlook during the earnings call helped ease many of those concerns. CEO Reed Hastings and CFO David Wells said that Netflix will profitably reach all 200 of the countries that have broadband service within two years.

Hastings and Wells claimed that the company would generate material global profits from 2017 onwards. A couple of weeks later, Netflix announced that it would be expanding into Japan in the fall, the first Asian market the company will enter that will serve as a launchpad for further expansion in the region. The company already has plans to enter into New Zealand and Australia in March.

I Know First was able to correctly predict the movement of Netflix’s stock prior to the most recent earnings report in an article on Seeking Alpha. The article, titled “Netflix Stock Forecast For 2015 Based On A Predictive Algorithm,” argued that the stock would bounce back from its poor performance after its third quarter earnings report. A second article, titled “Netflix Stock Forecast For 2015 Based On A Predictive Algorithm, Part II,” recapped how this did in fact happen. It also predicted the stock price would continue to rise, which has also taken place to this point.