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Netflix (NFLX)
If you want to kill this online DVD-rental service, you'd better drive a stake through its heart, Dracula-style. Netflix shares plunged 80% after video-store giant Blockbuster entered the online business in 2004. But Netflix roared back: 2005 sales rose 36%, profits doubled to $40 million, and shares have tripled since early last year. Now, stores are hurting: Blockbuster and Movie Gallery lost a combined $1 billion last year. Netflix is branching into film distribution, buying rights to 140 films in an effort to boost the market for smaller films its 5 million subscribers choose more often than new releases. And it's spending millions on R&D to prepare to deliver movies over the Internet. The goal: 20 million subscribers by 2010 to 2012, and 50% profit growth each of the next three years.
Company Info |
|
| 2005 Rank | NR |
| Market Value* ($ Millions) | 1,645.3 |
| Sales* ($ Millions) | 753.9 |
| Sales Growth (3-yr. avg. annual) |
66.7 % |
| Profits* ($ Millions) | 55.2 |
| Profit Growth (3-yr. avg. annual) | 154.0 % |
| Return on Inv. Capital (3-yr.) | 12.7 % |
| Share Price 12-Mo. Hi/Lo | 33/11 |
| Share Price As of 4/28/06 | 30 |
| Return on Equity | 23.2 % |
| P/E Ratio | 35 |
| No. of Employees | 985 |
| Industry | Internet Retail |
| CURRENT MARKET INFO | NFLX > |
| COMPANY WEB SITE > | |
| Location | Los Gatos, Calif. |
| Phone | 408 540-3700 |
*Trailing 12 months
Stock price data as of 4/28/06
DATA: Standard & Poor's Compustat
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Company Snapshot
Netflix operates as an online movie rental subscription service provider in the U.S. It provides its subscribers access to a library of movie, TV, and other filmed entertainment titles. As of Dec. 31, 2005, the company provided approximately 4.2 million subscribers access to a library of approximately 55,000 movies, TV, and other filmed entertainment titles. Netflix was founded by Reed Hastings in 1997 and has its headquarters in Los Gatos, Calif.
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