A Glance at Netflix, Inc. (NASDAQ:NFLX)’s Finances

Netflix, Inc. (NASDAQ:NFLX)’s investors eagerly await the results of the second quarter because the stock is expected to shoot above $500. The prediction is based on the stock’s previous performance. On 21^st April, 2014, the results for the first quarter were announced according to which the company had generated 24% more revenue than that in the same quarter of the last year. The international growth of the revenue for the company was 88.1% YoY and 20.6% on a sequential basis. Meanwhile, the domestic revenue growth is sequentially 7.8% and YoY 25%. In the last year, Netflix, Inc. (NASDAQ:NFLX) added about 11.89 million subscribers and by the end of the second quarter of this month, the total subscriptions were 49.81 million. Last quarter, the management reported 48.36 million total subscriptions. This is an increase of 12.04 million on YoY basis. Analysts have estimated that the company’s revenues will grow to $1.33 billion in Q2, and the FY2014 will generate $5.4 billion, totaling a net income of $213.9 million. And yet more improvement is expected from the company.

Netflix, Inc. (NASDAQ:NFLX) already has a huge number of US and UK streaming subscribers. Now the company is planning to enter into the European markets of countries like France. This will give the company over 6 million new subscribers, considering its huge content library. The company will definitely make an entrance into the market.

There are several countries where the services of Netflix, Inc. (NASDAQ:NFLX) are not available due to geographical restrictions. Such countries’ ISPs provide VPN hacks to their customers so that they can overcome the geographical restrictions of the services and enjoy streaming service of the company despite the fact that they are not officially available there. However, there are very few people who will be using hacks to access Netflix, Inc. (NASDAQ:NFLX)’s services as opposed to the millions of subscribers so this is not a major issue. Nonetheless, the company may even be working to come up with ways to rid itself of such unofficial subscribers.

Besides the VPN hacks, Netflix, Inc. (NASDAQ:NFLX) has bigger problems to deal with. As I have mentioned that the company has a vast library of content, however, acquiring this content officially costs a stellar amount. Because of the costly content, Netflix, Inc. (NASDAQ:NFLX) is under a debt as it is. On the other hand, Amazon is seriously considering adding more content to its library. It has recently splurged $300 million in order to gain rights from HBO to stream old shows like “The Wire”. Amazon’s primary customers will now be able to stream a wider collection of content.

Go and Hulu by HBO may also potentially offer a strong competition against Netflix, Inc. (NASDAQ:NFLX), besides Amazon. If they plan to raise their own game, they can potentially beat Netflix, Inc. (NASDAQ:NFLX) in its home market. Either way, Netflix, Inc. (NASDAQ:NFLX) is a pioneer in streaming content. The company’s stock will definitely see an increase. The stock is likely to pass $500 on its way to the top.