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Netflix Tops Estimates for Quarter, Projects Continued Gains

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Video commentary for April 16th 2018

Eoin Treacy's view
A link to today's video commentary is posted in the Subscriber's Area.


Netflix Tops Estimates for Quarter, Projects Continued Gains
This article by Lucas Shaw for Bloomberg may be of interest to subscribers. Here is a section:

Netflix Inc. posted its strongest start to a year since the company went public 16 years ago, thanks to strong growth in markets across Latin America and Europe.
The company added 7.41 million subscribers in the first quarter of the year, according to a company statement Monday, easily topping analysts’ projections of 6.35 million. Netflix now has 125 million paying customers, the most of any online TV network.

The company, the best-performing stock in the S&P 500 this year, is proving one quarter at a time that investors’ confidence in its online TV service has been justified. Netflix is using its growing subscriber base and deep pockets to poach talent from the biggest program suppliers and build a Hollywood studio for the internet age.

Shares of Netflix rose as much as 8.3 percent to $333.21 in extended trading after the results were announced. The stock fell 1.2 percent to $307.78 at the close in New York and is up 60 percent this year.

Netflix said first-quarter profit rose to 64 cents a share, up from 40 cents a year earlier and meeting analysts’ projections of 64 cents. Sales for the quarter grew 40 percent to $3.70 billion, compared with Wall Street projections of $3.69 billion.

For the current quarter, Netflix is predicting earnings of 79 cents and revenue of $3.93 billion. That compares with analysts’ estimates of 65 cents a share in profit and sales of $3.89 billion.

Eoin Treacy's view
Netflix came out with earnings immediately after the close and successfully added more subscribers than it was forecasting while earnings were as expected. The company has also made clear it intends to fund additional growth with debt and cashflows will be negative for the foreseeable future. 
 

Seeking Value in Cryptocurrencies
Thanks to a subscriber for this report from Barclays which may be of interest. Here is a section - continues in the Subscriber's Area.

Eoin Treacy's view
The best time to talk about bubbles in the cryptocurrency market was in December when the price was accelerating higher. The market subsequently fell 70% which is a decline consistent with the falls we have seen following other bubbles but obviously not as great as some. Continues in the Subscriiber's Area.


Historical charts of gold
History is not repeated but it does tend to rhyme. One of the biggest factors behind gold’s advance from the early 2000s was because of a lack on faith in the ability of fiat currencies to hold their value. The growth of markets like China and India then contributed an additional demand driver.

I am intrigued by the similarity in the saucering base formations gold put in during the early 2000s and what it is doing now. History need not repeat itself but these charts are certainly evidence that this is not the first-time gold has put in a lengthy period of ranging.

Smaller gold miners like St Barbara, Evolution Mining are outperforming at present as production ramps up and costs are kept under control.

Eoin Treacy's view
History is not repeated but it does tend to rhyme. One of the biggest factors behind gold’s advance from the early 2000s was because of a lack on faith in the ability of fiat currencies to hold their value. The growth of markets like China and India then contributed an additional demand driver.



Long-term themes review April 10th 2018

Eoin Treacy's view
FullerTreacyMoney has a very varied group of people as subscribers. Some of you like to receive our views in written form, while others prefer the first-person experience of listening to the audio or watching daily videos.

The Big Picture Long-Term video, posted every Friday, is aimed squarely at anyone who does not have the time to read the daily commentary but wishes to gain some perspective on what we think the long-term outlook holds. However, I think it is also important to have a clear written record for where we lie in terms of the long-term themes we have identified, particularly as short-term market machinations influence perceptions.

Here is a summary of my view at present - continues in the Subscriber's Area.



Eoin's personal portfolio April 11th 2018

Eoin Treacy's view
One of the requests subscribers have asked for most over the last few years has been to have an easy way to find what positions I have open at any given time. Therefore, I repost this section on a daily basis and the title will always include the date of my most recent trade - continues in the Subscriber's Area.

 

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