Netflix, Inc. [Nasdaq: NFLX] has announced that it is going to spend $100 million in a new production hub to be setup in New York city. In addition to this investment fund, the video production and streaming giant is planning to continue expanding into larger working spaces in the Manhattan area. The company expects the Manhattan offices to host more than 127 workers from its current 30 in order to allow it to earn a tax incentive worth $4 million. The New York Governor Andrew Cuomo expressed his excitement regarding the streaming giant decision to open a new production hub in the city:
“We’re proud Netflix chose New York to grow its business, and we look forward to the jobs, economic activity and world-class productions this project will bring, “Andrew Cuomo said in statement.
According to Jason Haber, a broker at Warburg Realty the investment is “a great move for Netflix and for New York.” The production hub will be established in Bushwick, Brooklyn and will in the next ten years be home to new positions expected to be in their thousands. Already, Netflix has many numerous productions in New York including ‘Unbreakable Kimmy Schmidt.’
Netflix (NFLX) stock performance
Meanwhile, the New York expansion news seem to have attracted investor attention as [NASDAQ:NFLX] opened the market on April 22 with gains of 4.17% and a +16.99 relative change on the day. The stock is currently trading at $377.34 after opening the session at $359.70. It has a daily range between $359.00 and $377.69). In a broader perspective NFLX 52-week range is between $231.23 and $423.21.
The stock volume stands at $11,980,534 but has an average stock volume of $8,027,722. The streaming giant has a market capitalization of $164.97 billion, its Beta (3Y Monthly) stands at $1.58, PE Ratio (TTM) at $134.76 and an EPS (TTM) of $2.80.
Moreover, the stock has a 52-week change of 17.37% and an S&P500 52-Week Change of 10.27%. The 50-day Moving Average for [NASDAQ:NFLX] is at $361.61 at the time of writing while the 200-day Moving Average at $325.18.
On the other hand, [NASDAQ:NFLX] share statistics show an average 3-month volume of $$8.03 million, average 10-day volume of $13.93 million. Its shares outstanding lie at $437.19 million with a float of $430.59 million.
In the recent quarterly report released on March 31, 2019 Netflix outperformed its projection for new member subscription growth to 9.6 million in comparison to the estimated 8.9 million. This represented a 16% growth from the previous period. Netflix posted $459 million in operating revenue representing a 10% operating margin. There has been a progressive growth in the recent years with margins increasing from 4% in 2016 to 7% in 2017 to 10% in 2018 and 13% in 2019.
The executive team at the company are foreseeing cash outflow rising to $3.5 billion in 2019 compared to $3 billion in 2018 and just $2 billion in 2017. This increase is happening in spite of the company’s profits looking much brighter with every passing year. The management says that it is spending more on quality content production a move that it expects will drive higher engagement in turn bring up membership gains towards the launch in the coming few years.