The Stock of Netflix Inc.

Categories: BusinessNetflix

The stock of Netflix, Inc. as predicted is a profit earning stock. As the data shows, it has a steadily drop since October, even though the company's report shows a good trend in earnings and subscriber growth. As we know, a company with a consumer cyclical market sector would face problems like changes in the economic cycle and consumer purchase rate. Therefore, it is no obvious evidence that proves the drop on any specific metric. For the event that makes the stock fallen: there's a big free cash flow move in Netflix in 2017 with its unpredictable(wrong) direction, but the company still choose to add almost 1 million paying US customers in the quarter that brought the revenue to 58.

46 million. As the explanation published by the company to shareholders, the primary driver of our working capital needs that creates the gap between our positive net income and our free cash flow deficit, explained the action they did. However, after closing the market in September at 4.

Get quality help now
writer-Charlotte
writer-Charlotte
checked Verified writer

Proficient in: Business

star star star star 4.7 (348)

“ Amazing as always, gave her a week to finish a big assignment and came through way ahead of time. ”

avatar avatar avatar
+84 relevant experts are online
Hire writer

13, the shares fell in October, a 19% drop that creates a fear in the consumers'.

Anyway, Netflix has always be one of the market's best performers, and it got back at February and May with a increased 40.7% to May compare to September in 2018. The Netflix has offered many conservative guidance in the past. But things happened. Meanwhile, Disney has operated at its lower price for its most popular plan which that created a decrease in Netflix users. However, on the dip of Netflix stock, people buy in that makes a turn back on the market, also it choose to increase its price as the aim to help it add more tv shows and movies.

Get to Know The Price Estimate For Your Paper
Topic
Number of pages
Email Invalid email

By clicking “Check Writers’ Offers”, you agree to our terms of service and privacy policy. We’ll occasionally send you promo and account related email

"You must agree to out terms of services and privacy policy"
Write my paper

You won’t be charged yet!

This correction has made an upward sloping in the market.Aurora Cannabis Inc. The stock of Aurora Cannabis Inc. as predicted should increased at its increasing rate. The stock did show as increased at increasing rate until December, it faced a sudden drop with 27% compare to its initial start at September as the index shows. Due to the US midterm election on November, the sale has been legalising in many states in US and the stock increased hugely. Over 10 states plus the capital city Washington DC have all legalised the selling of marijuana, and till October the full legalisation had came to Canada. However, the big boom of selling pot to Canada has caused shortage on the production of marijuana.

Moreover, after the period has passed, the market took back most of the gains and reports of quarterly earnings disappointed many investors in the following months which lead a 27% dropped. In addition, the biggest partnership Canopy Growth as the hugest land of growing Canadian marijuana has been took 38% stake by Constellation Brands that threatened Aurora to compete in the market. Anyway, in the long run, since Aurora Cannabis already planned and put pieces in place it will not have a straight effect by the lack of partnership. The stock yield in February with a 5% increase slowly moved up to 34% compare with the last two months. As the performance of Aurora Cannabis has always be good and strong in the long run term.Olympus Corporation The stock of Olympus Corporation as predicted should a profit gaining stock. The stock shows a downward sloping at beginning start of September with a drop of 26%. Looking up on the internet, there are many different types of scandals in this company, one of the most famous/worst would be the scandal in 2011 when its ex-CEO Michael Woodford was suddenly ousted.

Following up in the year 2018, another scandal came up, Olympus scandal: Former bosses to pay $529m over fraud published by BBC. It was another big scandal of its ex-chairman Ysuyoshi Kikukawa and 15 others liable for $529m found by a Tokyo court after the old one that the ex CEO concealed losses of $1.7bn. This scandal was one of the biggest financial frauds in Japan's history and after the quick drop on the stock market, because of the hedge, the company decided to cancel $88m bond float over the fears its tumbling stock price would scare investors away. Economy in Japan at the period was extremely unstable, even its competitors all dropped at the same time. Cannon has reported to recalculate its total revenue as the stock dropped significantly. 2018 was a rough year for Olympus Corp., even the growth in Medical Business and Scientific Solution Business would not help it to earn any profit. However, as a global company, it soon yield in the February in 2019 as the US economy was the star at the time, and the economy continued to steadily slowly recover to 10% upward sloping. Many places' economy is at the recovery stage like Europe that its recovering amid improvement in the employment environment. The trend for other competitors also recovered as the whole World's economy is developing steadily but in a slow rate.

Pfizer Inc. The stock of Pfizer Inc. was predicted as an upward sloping stock but faced a big potential of surpassing by its competitors. As a healthcare market sector, all the number would be affected by the purchase from other companies and consumers. At the beginning of purchasing stage, the stock shows an upward sloping of 11%, as the sales grow reported by the The Wall Street Journal. Pfizer Inc.'s new portfolio of prescription drugs lifted sales during the first quarter as the company said it continues to make progress on growing through its internal pipeline, the new invention has affected the sale of other competitors slightly. However, the good situation does not last too long, it started to drop as the start of 2019 with a percentage of 2 compare with 2018's result. One big reason is under the pressure from the US president Trump, the company raised prices on 41 prescription drugs after President Donald Trump criticized the drug giant. Trump said Pfizer and other drugmakers "should be ashamed" of themselves. One saying has made a drop in stock for the company. The power of president.

Moreover, Shares of Pfizer and its competitor Merck fell on Wednesday after Wall Street analysts downgraded the drugmakers on increased competition and the pending loss of patent protection. "We've been Merck bulls because of Keytruda; however, the Street's Keytruda expectations are now meaningfully above ours, and seem to overlook competitive risks. We expect four to five competitor IO trial readouts in 2019 that have the potential to produce competitive results, and increase uncertainty," BMO's pharmaceuticals analyst Alex Arfaei said in a note.Freddie Mac The stock of Freddie Mac was predicted as an upward sloping stock and might bring huge profits to my investment which it did as the result showed, and I am regret not putting all my money into this one.

The stock final result has showed an increased of 76% which is the highest percentage I have among all other stocks. It was suffering a downward sloping in April with a 28% but soon recovery in February with upward sloping of 63%. Because of the increasing interest rate and spread volatility that has created $0.5 billion market-related losses in the Freddie Mac's stock. The company reported market related losses of about $0.5 billion for the full year of 2018, after tax, but explained this was almost entirely from interest rate impacts. The fourth quarter saw market-related losses of $0.6 billion, of which about half was due to rising interest rates and the other half from market spread impacts. Moreover, because of the possibility that losses was occurred with tax effect, both company Fannie Mae(competitor) and Freddie Mac regained their capital reserves, each withholding $3 billion from the Department of the Treasury.

However, it quickly soaring again for both Fannie Mae(competitor) and Freddie Mac shares. Shares of the two mortgage giants are building on Friday's surge, rising as investors become increasingly hopeful that they could soon be freed from government conservatorship. Even though that both company has made a lot of dividend for years, and none of it has make its way into they shareholders' pockets due to the US Treasury has split it by installing a net worth sweep sent all of their profits straightly to the Treasury.

Updated: Apr 13, 2021
Cite this page

The Stock of Netflix Inc.. (2019, Aug 20). Retrieved from https://studymoose.com/the-stock-of-netflix-inc-essay

The Stock of Netflix Inc. essay
Live chat  with support 24/7

👋 Hi! I’m your smart assistant Amy!

Don’t know where to start? Type your requirements and I’ll connect you to an academic expert within 3 minutes.

get help with your assignment