Netflix Earnings

On Monday after the market closed, Netflix Inc. (NFLX) announced first quarter results that were slightly better than expected but missed on the amount of users added.

The company the earned 40 cents per share on $2.64 billion in revenue which was in line with analyst expectations. This is compared to $1.96 billion earned last year for the same period.

Netflix only added 3.5 million international users compared to expectations 4.5 million but is expecting another 3.2 million in the second quarter.

NFLX Technicals

Shares of Netflix initially sold-off following their earnings but quickly rebounded and are now slightly up. Shares are finding a lot of resistance in the $149.70 area so look for that to continue to act as resistance through out the morning.

If shares can get above that level then we will be in uncharted territory and will have to rely on big psychological levels like $150 as a point of resistance.

Look for shares to be more volatile than normal as active traders look to take advantage of a bigger move when the market opens.

Executive Comments

“In Q1, we surpassed $2.5 billion in quarterly streaming revenue and added 5 million members. The opportunity provided to us by the growth of the global internet is gigantic and our plan is to keep investing as we increase membership, revenue and operating margins.” –Netflix

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