Netflix stock rebounds on improved global outlook
Netflix stock closed up nearly five points on Friday after promising news on the streaming service regaining international market share.
On Thursday morning, Netflix shares dipped to its lowest level since December, when it traded at 258.69 before rebounding 10 points to close at 268.15. The rally continued Friday and closed at 272.79.
SimilarWeb, a website that provides web analytics services for businesses, has data indicating that the global slump that put pressure on shares last quarter is reversing, with international daily active users growing around 25% year-over-year and 11% sequentially - after being flat from the first to second quarters.
Though it’s a tight time frame, SimilarWeb puts together its estimates through a panel of hundreds of millions of phones and tablets in 30 international regions.
One big positive for Netflix is that a previous hit to subscription numbers following price hikes might be evening out ahead of the next round in the streaming wars.
On the other hand, SimilarWeb’s data shows Netflix's daily active users more than doubled from quarter to quarter.
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This comes two weeks after Evercore ISI’s Lee Horowitz, John Belton, and Vijay Jayant wrote in a Sept. 20 research note that they believe Netflix’s international growth may have hit a bump in the road ahead of the streaming third-quarter earnings report in October.
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International downloads of the Netflix application have been slowing down since July, and the latest read on the data implies that it hasn’t improved midway through September.
However, the analysts also found that the Netflix app’s month-to-date international downloads in the Apple App Store and Google Play Store have grown about five percent in July and August from last year when there was 21 percent growth.