Recently Netflix released its earnings for the first quarter of the year. In the announcement the company
Question:
Recently Netflix released its earnings for the first quarter of the year. In the announcement the company highlighted a number of its accomplishments, including:
- An addition of 2 million subscribers using online streaming services
- Strong interest in the online series “House of Cards,” an original content show produced by Netflix
- Over 29 million total U.S streaming subscribers, more than the 28.7 million people who subscribe to rival HBO
- A $27 million profit of the quarter, compared to a loss of $4.6 million for the same period in the previous year
REQUIRED:
Discuss how the areas outlined above would be received by analysts and investors following the company and how evidence of these accomplishments would be reflected on the financial statements.
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Analysts and investors following Netflix would react positively to new subscribers as wel...View the full answer
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