- Netflix reported mixed fourth-quarter 2019 earnings on Tuesday after the market closed.
- Shares of Netflix gained in premarket trading Wednesday but slipped as much as 3% later in the day.
- While Netflix beat estimates on revenue and subscriptions outside the US grew, competition from Disney Plus and Apple TV Plus lowered paid net subscribers in the US.
- Here's what nine analysts had to say about Netflix after the earnings report.
- Watch Netflix trade live on Markets Insider.
- Read more on Business Insider.
On Tuesday, Netflix reported fourth-quarter 2019 earnings that exceeded international growth targets but missed in the United States.
Shares of the company gained slightly in premarket trading Wednesday, but gave up those gains and traded down as much as 3% later in the day.
The fourth-quarter earnings statement was important for Netflix as it showed how the streaming service held up to new competition from rivals Disney Plus and Apple TV Plus. Netflix's Tuesday report showed that in the US, the competition took a bite out of subscribers - Netflix added just 420,000 paid net subscribers, falling below its estimate that it would add 600,000.
Competition for paid members will continue and even increase as the so-called streaming wars rage on. This year, Netflix will have more competition to fight for subscribers with - HBO Max, Peacock, and Quibi will all launch in the spring.
Still, a majority of Wall Street analysts are bullish on Netflix. The company added 8.3 million subscribers internationally in the fourth quarter, bringing its total paid net subscribers outside of the US to more than 100 million for the first time ever.
The company also brought in $5.47 billion in revenue, up 31% from a year prior and beating Wall Street estimates. Adjusted earnings per share were $1.30, ahead of Wall Street estimates of 53 cents per share and Netflix's own estimate of 51 cents per share.
Wall Street analysts have a consensus price target of $360.46 on Netflix, nearly 7% above where it traded at Tuesday's close. In addition, analysts have 29 "buy" ratings, 10 "hold" ratings, and seven "sell" ratings on Netflix shares.
Here's what nine analysts said about Netflix following its earnings report, ranked in ascending order of price target: