Take ‘Stock’ Of Online Service’s Recent Subscription Successes, Financial Expert Says

As if you needed Wall Street to confirm what many of us already knew, Netflix is on a roll. Media reports show that the live-streaming entertainment service that offers films, television shows and other programs has seen subscription rates swell far higher than what was previously expected. Specifically, CNBC reported in July 2017 that Netflix added 5.2 million members during the second quarter; predictions on Wall Street pegged Netflix to add about 3.2 million subscribers internationally. Naturally, the price of Netflix stock is soaring given the good news. According to Todd Katz, formerly of Quest Integrity, keen investors should be keeping a close eye on the entertainment service if they’d like to profit , as well. As a former chief financial officer of Quest Integrity, Todd Katz oversaw the change-of-hands at the pipeline inspection company that turned it over to a publicly-traded company. One year after that deal went through, the company recorded revenue of $75 million in 2016.

According to the CNBC report, clients of Netflix were briefed on the good news in a memo that went on to say, “The company’s global scale and ability to mass-personalize content and marketing is fueling subscriber growth that few competitors are positioned to match.” According to the report, the note from KeyBanc Capital adds, “This should fuel revenue and subscriber growth at least in line with expectations while expanding barriers to entry.” As a former chief financial officer with Quest Integrity, Todd Katz has seen the significance of the stock market. The sale of his former employer to a publicly-traded company wouldn’t have been possible if it weren’t for eight years of growth, including a large increase of employees and income.

Todd Katz saw similar successes as a director of mergers and acquisitions at wealth management firms across the country, including his role in helping to earn some $34 million in revenue. It’s crucial for companies on an upward trajectory to keep on that path and it appears Netflix is well aware of this. While 91 Emmy nominations for original in-house content is a pretty good start, the CNBC article notes that programs like “Orange is the New Black” are one of the ways that Netflix is showing subscribers and investors that it takes content creation seriously. Morgan Stanley, a financial services firm, boosted its price for Netflix shares from $185 to $210, according to the CNBC report. According to Todd Katz of Quest Integrity, this is one of the strongest signs of economic health.