Giant Tech stock to watch: Netflix, Inc. (NASDAQ: NFLX)

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Netflix, Inc.(NASDAQ: NFLX) stock fell over 0.9% in the pre-market session of January 22nd, 2020 (as of  9:03 am GMT-5; Source: Google finance) as they offered a weak outlook for the start of 2020, raising concerns about its dominance in an increasingly competition. Further, Apple’s TV+ and the Disney+ platform both launched in the U.S. during November, attracting consumers with lower-cost services, while AT&T’s HBO Max and Comcast’s Peacock are both coming online in the next few months.

Meanwhile, Netflix is seeing its future potential on growth outside the U.S., where it does not yet face the same level of competition as it is in U.S. Europe and Latin America have been the company’s growth engine in the past few years, and continued to serve that role in the fourth quarter. Netflix has added 4.4 million customers in Europe, which brings its overall total to about 52 million, and another 2.04 million customers in Latin America.

The company has posted the addition of 8.76 million paid subscribers globally in the fourth quarter of 2019, out of which 550,000 of them domestically. Analysts were expecting for global paid streaming subscriber additions of 7.9 million, according to FactSet, on domestic additions of 623,000 and 7.2 million internationally. Netflix had reported 8.84 million new paid streaming subscribers in the year-ago quarter.

NFLX in the fourth quarter of FY 19 has reported the adjusted earnings per share of $1.30, beating the analysts’ estimates for the adjusted earnings per share of 52 cents, according to FactSet. The company had reported the adjusted revenue growth of 30 percent to $5.47 billion in the fourth quarter of FY 19, beating the analysts’ estimates for revenue of $5.45 billion.

For the first-quarter 2020, the company expects revenue to be of $5.73 billion, which is on par with FactSet estimates, and global paid subscriber additions to be of 7 million compared to the 8.9 million projected by FactSet, indicating the company no longer expects strong domestic growth.

Moreover, NFLX intends plans to release more than 100 seasons of local language programming next year. Though its biggest global hits are mostly English-language shows such as “Stranger Things” and “The Witcher,” its most popular programs in many territories are in other languages, like Spain’s “Casa de Papel.” The company is also experimenting with different pricing plans in Asia. NFLX has borrowed billions to fund all that programming, and its long-term debt stands at almost $15 billion.

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