A keen investor keeps his eye open on every stock, following its patterns and trends and jump in when an opportunity reveals itself. There was a drop in the Netflix (NASDAQ:NFLX) shares last week. To take advantage of the situation was Mark Cuban, known as a Shark Tank star and owner of Dallas Mavericks but at this point also a notable investor. He stated to the public that after a drop in Netflix (NASDAQ:NFLX) shares he bought 50,000 shares of the leading video service.
Netflix (NASDAQ:NFLX)’s last week results of the quarter came out as disappointing. The quarter rounded off to 53.06 million online subscribers worldwide, which was well below their target of 53.74 million for this period. In its defense Netflix (NASDAQ:NFLX) believes this gap is due to the rise of the service’s springtime rate increase. This increase was for new users specifically, going from $7.99 to $8.99 a month. This move was made without a thorough study of the market changes. And as a result the Netflix (NASDAQ:NFLX) stock fell by 21%. And that’s when Mark waltzed in to take advantage of the situation.
According to public opinion Mark Cuban is considered bold, cheeky and a swagger but when it comes to the internet industry he seems to be knowledgeable and has a forward thinking. Back in 1999 he earned his billions and his billionaire title by selling his online media pioneer Broadcast.com. This means if he sees potential in the Netflix (NASDAQ:NFLX) stocks then there probably is something laying there that average investors haven’t picked up on. He considers Netflix (NASDAQ:NFLX) a top dog in an unsettled niche with many potential advantages in the long run.
He mentioned in his interview on CNBC on Wednesday morning that the one company that always comes up at the top regardless of what’s happening in its surrounding is Netflix (NASDAQ:NFLX). And it won’t be long when Netflix (NASDAQ:NFLX) crosses into international borders.
His statement does make sense, at this stage to be a part of team which holds top position in the global marketplace with over 53 million subscribers. Being able to cater to a large target audience isn’t only the bonus here, no other company at this stage could cover the cost like Netflix (NASDAQ:NFLX) on a regular basis for streaming. The company at this stage has 53 million subscribers and is aiming at 57 subscribers by the end of the year.
Even though its last quarter didn’t meet set objectives but the revenues did glide up by 27% and the operating profit rose 93% and the total net income was up by 86%. Not being able to reach its viewership target is just one part of the picture. It’s made investors skeptic but these are the small group of people that once assumed that Netflix (NASDAQ:NFLX) wouldn’t make it past the 30 to 40 million subscribers. Could not being able to reach set goals in terms of viewership be its only success defining element? Not according to Mark Cuban, he still believes Netflix (NASDAQ:NFLX) is in the driver seat.