Netflix rallies after sharing global data, Roku dips as CFO steps down
SAN FRANCISCO - Shares of Netflix jumped 3.4% on Tuesday after the streaming heavyweight unveiled historical data showing strong overseas growth, while Roku dropped 1.5% after saying its well-respected chief financial officer would step down.
Netflix provided historical details about its international business ahead of its Jan. 21 quarterly report, which will disclose revenue and membership by region for the first time.
Shares of the video streaming service have surged over 3,800% since the start of 2010, easily making Netflix the decade’s top-performing stock on Wall Street. But the stock has fallen 25% from its record high in July 2018 as the Los Gatos, California company has wrestled with ballooning production costs, competition from media giant Walt Disney Co and questions about its pace of user growth.
Roku, which along with Netflix has benefited from consumers’ abandonment of traditional cable television, dipped by about $2 after the company late on Monday announced the resignation of Chief Financial Officer Steve Louden, who shepherded the company through its successful 2017 initial public offer.
Roku, which said Louden would stay on until a successor is found, has seen its stock gain 351% so far in 2019, and is up 874% since from its IPO price, leading Morgan Stanley this month to warn of “exuberance” around video streaming stocks.
Netflix’s filing late on Monday showed that in the Asia-Pacific region - the company’s smallest - membership grew 148% from the end of the third quarter of 2017 to the end of the third quarter of 2019. Membership in Europe, the Middle East and Africa increased 132% during the same period, while membership in Latin America grew 61%.
Analysts on average expect Netflix to increase its revenue by 27.5% this year and 21.8% in 2020, according to Refinitiv.